The Reserve Bank of New Zealand – Te Pūtea Matua has been undertaking a review of its liquidity facilities and operations. This review is operational in nature and has no implications for the stance of monetary policy. The Reserve Bank has determined that the following changes will take effect on 17 June 2025:
- The Standing Repo Facility (‘SRF’) will be discontinued.
This facility was launched in July 2022 to support monetary policy implementation during the abundant liquidity environment post COVID-19 and has seen minimal usage in the past year. The Reserve Bank retains the ability to re-launch the SRF in the future should it again be beneficial for monetary policy implementation.
- Weekly Reserve Bank bill auctions will be discontinued.
There has been very limited use of this product in the past year. However, Reserve Bank bills may be offered as part of the Reserve Bank’s Open Market Operations (‘OMOs’) in response to reverse enquiry.
- Pricing on the Bond Lending Facility (‘BLF’) will revert to OCR minus 50bps (from minus 25bps). There is no change to the availability of the BLF.
This pricing change affirms the role of the BLF as a backstop facility to support liquidity in the secondary market for New Zealand government bonds.
- Pricing on the Overnight Reverse Repurchase Facility (‘ORRF’) will revert to OCR plus 50bps (from OCR plus 25bps). There is no change to the availability of the ORRF.
This pricing change affirms the role of the ORRF as a backstop facility for sourcing cash liquidity in return for eligible collateral.
The Domestic Markets Operating Rules and Guidelines will be updated to reflect these changes when they come into effect on 17 June 2025.
The Reserve Bank plans to issue a consultation in Q3 2025 which will cover operational parameters of its Open Market Operations. This consultation will also seek input on design considerations for a Committed Liquidity Facility, previously announced as part of the forthcoming changes to the RBNZ’s prudential liquidity standard.
Full details of our domestic facilities are available on the Domestic Markets page and in the Operating Rules and Guidelines.
More information
- Domestic Markets
- Operating Rules and Guidelines for the Domestic Markets
- Repo eligible securities and haircuts
For further information contact
Kate Le Quesne
Director of Financial Markets
Email: [email protected]
Dean Hill
Senior Manager, Financial Markets
Email: [email protected]
Media contact
James Weir
Senior Adviser, External Stakeholders
DDI: +64 4 471 3962 MOB: 021 103 1622
Email: [email protected]