Impact of Reserve Bank's FLP difficult to measure: Bascand

Reserve Bank deputy governor Geoff Bascand said RBNZ needs to ease off the accelerator. (Image: Getty)

Tue, 24 Aug 2021

Hiking the official cash rate to tighten monetary policy, rather than dispensing with the funding-for-lending programme (FLP), has a much more certain impact on the economy, said Reserve Bank deputy governor Geoff Bascand.Raising the Official Cash Rate (OCR) provides "much more predictability … we know the impact it will have on short rates," Bascand told BusinessDesk.While there are various ways to estimate the impact of the FLP and, in theory, ending it would be a tightening of monetary policy, "one doesn't really kn...

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