Why the RBNZ's bond-buying programme is an albatross

The Reserve Bank's LSAP is a difficult-to-deal-with albatross. (Image: Getty)

Mon, 22 Nov 2021

In the dark days of the covid-19 pandemic's onslaught in March last year, it was obvious the government and its agencies, such as the Reserve Bank, were making policy on the hoof.They had no choice, such was the suddenness of the pandemic and the drastic measures taken to protect the country. Some of the measures taken would surely work and others would inevitably prove to have been mistakes.For example, the 12-week wage subsidy provided when the first lockdown started was an effective, if not the most effective, policy because it kept...

Subscribe to BusinessDesk

Stay informed on business, government and financial developments across New Zealand.

Deeply researched, twice-edited and fact-checked news
Annual subscribers also receive a complimentary subscription to The Wall Street Journal
Personalised email news alerts, plus gift up to 5 stories a month to non-subscribers

You can cancel anytime with two clicks, an email or a phone call.
Find out more.

We are serious about journalism.

Name {{ registerForm.errors.get('name') }}

Email address {{ registerForm.errors.get('email') }}

Phone Number {{ registerForm.errors.get('phone') }}

Job Title {{ registerForm.errors.get('title') }}

Password Minimum password length of 8 characters.
Require at least one upper and lowercase, numeric, and special character. {{ registerForm.errors.get('password') }}

Repeat password {{ registerForm.errors.get('password_confirmation') }}

We had trouble validating your card. It's possible your card provider is preventing us from charging the card. Please contact your card provider or customer support.

Credit Card

Cardholder's name

{{ __(plans[index].name) | capitalize }} {{ plans[index].attributes.old_price | currency }} {{ plans[index].price | currency }}

All subscriptions auto renew but are easy to cancel.

I Accept The Terms Of Service

{{ registerForm.errors.get('terms') }}

Tax: {{ taxAmount(selectedPlan) | currency }}

Total Price Including Tax: {{ priceWithTax(selectedPlan) | currency }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerSeat ? '/ '+ spark.seatName : '' }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerTeam ? '/ '+ __('teams.team') : '' }} / {{ __(selectedPlan.interval) | capitalize }}

Markets Market Close

Auckland Airport dominates volumes; NZX dips 0.61%

The S&P/ASX 200 has recovered from the US's so-called "Liberation Day".

Gregor Thompson 29 Apr 2025

Energy

Lines companies to get more power to remove trees

Balancing the right to power with property rights is at the heart of the changes.

Ian Llewellyn 29 Apr 2025

Lines companies to get more power to remove trees

Primary Sector

Fonterra to close its Hamilton canning and packaging facility

It will close at the end of July, affecting 120 jobs.

Riley Kennedy 29 Apr 2025

Fonterra to close its Hamilton canning and packaging facility

Sponsored

“Not an invisible footprint”: Why technology supply chains need optimising

Outdated hardware is a supply chain and cost risk.

Datacom

Sponsored

Bayleys Total Property Issue 3 out now

Backed by Bayleys’ national strength and global reach

Bayleys

More Finance

Finance

Kernel adds shares and ETFs, but no day trading

Kernel Wealth's test share buyers have been piling into Nvidia, Apple and Google.

Rebecca Stevenson 29 Apr 2025

Finance

PEP seeking payday from UP Education

UP Education is a NZ success story in Australia.

Pattrick Smellie 23 Apr 2025

Finance

FNZ extends controversial catch-up offer

Fintech FNZ has extended its deadline for “catch-up” equity offers, as employee shareholders say discontent grows.In March, the global fintech offered its class B shareholders a “catch-up” offer after it revealed their holdings could be massively diluted following its August capi...

Victoria Young 16 Apr 2025

Finance

The cost of over-regulated banking: $10b to $14.4b a year

Critics claim a huge annual cost from 30 years of regulatory creep.

Pattrick Smellie 16 Apr 2025

Why the RBNZ's bond-buying programme is an albatross

More Finance

Your company has a subscription

Team