RBNZ boosts bond market liquidity, adds new tools to maintain markets

By Rebecca Howard | Fri, 20 Mar 2020


New Zealand’s central bank has moved to boost liquidity in the government bond market and said it is prepared to intervene in the foreign exchange market if necessary to ensure the orderly functioning of the country's financial markets.The moves are part of package announced today which includes a new term loan facility and extra funding for the foreign exchange swaps market. It follows a 5 US cent drop in the kiwi dollar yesterday and complaints from banks that there had been a "perverse" tightening in local money supply.“We will ensure our op...