RBNZ money printing: nearly $20b in losses?

The Reserve Bank printed about $55b during covid plus lending banks $19b of cheap money. (Image: Getty)

Fri, 14 Apr 2023

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...

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