Your browser is not supported

Our website does not support the browser you are using. For a better browsing experience update to a compatible browser like the latest browsers from Chrome, Firefox and Safari.

Reserve Bank Financial Markets Statement - 24 February 2022

This Financial Markets Statement confirms the pricing of our standing facilities, ESAS accounts, Funding for Lending Programme, and the details of the Large Scale Asset Purchase (LSAP) Programme.

Pricing is as follows (effective 24 February 2022):

  • ESAS balances – cash that ESAS account holders have on deposit with us in their ESAS accounts will be remunerated at the Official Cash Rate (OCR), currently 1.00%.
  • Bond Lending Facility – bonds lent through the Bond Lending Facility will be lent at the OCR less 25 basis points.
  • Overnight Reverse Repo Facility – cash will be lent via the Overnight Reverse Repo Facility at the Overnight Reverse Repo Rate which is OCR plus 25 basis points.

Full details of our liquidity facilities including applicable haircuts for eligible securities, eligibility criteria and operational guidelines are available on the Domestic Markets page.

Domestic Markets

On 23 February, the Monetary Policy Committee agreed to commence the gradual reduction of our bond holdings under the LSAP programme – through both bond maturities and managed sales to New Zealand Debt Management (NZDM). The Committee agreed to hold the Local Government Funding Agency Bonds until maturity, as the holdings of these bonds are comparatively small.

We intend to commence bond sales in July 2022 at a rate of $5 billion per fiscal year. We will issue a market announcement in coming months outlining operational details prior to commencement.

The Funding for Lending Programme remains unchanged.

For more information read the February Monetary Policy Statement.

Monetary Policy Statement - February 2022

For further information contact:

Vanessa Rayner
Head of Financial Markets
[email protected]

Kate Le Quesne
Manager, Financial Markets
[email protected]

Media contact:

James Weir
Senior Adviser External Stakeholders
DDI: +64 4 471 3962 | MOB: 021 103 1622
[email protected]