RBNZ money printing: nearly $20b in losses?

RBNZ money printing: nearly $20b in losses?
The Reserve Bank printed about $55b during covid plus lending banks $19b of cheap money. (Image: Getty)
Jenny Ruth
Note to readers: The Treasury and Reserve Bank of NZ have provided explanations for why it is wrong, and BusinessDesk accepts it is wrong, without accepting the explanations, to add the mark-to-market losses on the LSAP bonds to the difference between the bond coupons and the amount of interest RBNZ pays on settlement cash. Jenny Ruth’s Monday column explores this issue in depth.Treasury estimates the direct fiscal loss to the government from the Reserve Bank’s covid-era large-scale asset programme (LSAP) is about $10.5 billion.And...

More Finance

Officials MIA on banking competition, say critics
Finance

Officials MIA on banking competition, say critics

Over-regulation of the banking sector is blamed for stifling competition.

Pattrick Smellie 20 Feb 2025
Heartland declares $49.6m impairment in NZ business
Finance

Heartland declares $49.6m impairment in NZ business

Heartland Group shares fell 12% in early trading.

Gregor Thompson 18 Feb 2025
Big banks scrubbing public mentions of DEI
Finance

Big banks scrubbing public mentions of DEI

Citigroup and others seek to avoid possible litigation and federal probes.

Toy entrepreneur quashes spec of NZME takeover
Finance

Toy entrepreneur quashes spec of NZME takeover

Zuru founder Nick Mowbray says a report speculating he could take over private media company NZME is wrong. On Friday morning, The Australian’s Data Room said “some wealthy Kiwis” were plotting to do something about the state of New Zealand’s media industry and cited Mowbray as a...

Victoria Young 14 Feb 2025