Banks borrow more cheap RBNZ money while hiking loan rates

Banks borrow more cheap RBNZ money while hiking loan rates
RBNZ governor Adrian Orr said the cheap bank funding is a contract. (Image: Getty)
Jenny Ruth
New Zealand's banks have borrowed an additional $1.5 billion so far this week from the Reserve Bank at 0.25% under the funding-for-lending programme (FLP).That's even as they have been raising their own lending rates in anticipation that the RBNZ will raise its official cash rate soon, something the central bank confirmed on Wednesday.RBNZ data shows banks borrowed $500 million on Wednesday after borrowing $1b on Tuesday under the FLP scheme.The data doesn't reveal which banks did the borrowing under the scheme which the RBNZ introd...

More Finance

Port of Auckland to pay $45m special dividend to council
Finance

Port of Auckland to pay $45m special dividend to council

The divestment proceeds will be used to top up the Auckland Future Fund.

Oliver Lewis 27 Jun 2025
$600m in tourist spend at risk from regulation: Mastercard
Finance

$600m in tourist spend at risk from regulation: Mastercard

When Europe cut interchange fees, foreign card decline rates soared.

Pattrick Smellie 27 Jun 2025
Michael Lorimer exits Grant Samuel amid more sector change
Finance

Michael Lorimer exits Grant Samuel amid more sector change

Lorimer has sold his 80% stake in the corporate advisory firm.

Duncan Bridgeman 26 Jun 2025