RBNZ introduces hybrid liquidity strategy with supply-driven ops and on-demand borrowing.

The Reserve Bank of New Zealand (RBNZ) has announced a new strategy to address financial market dysfunction, as outlined by Assistant Governor Karen Silk. The RBNZ will use a hybrid approach to ensure liquidity in the cash system, combining supply-driven operations like foreign exchange swaps with an on-demand borrowing facility for counterparties. The bank emphasizes transparency in implementing changes and will not provide guidance on future monetary policy.

October 22, 2024
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