Reserve Bank Market Operations Statement - 25 June 2020

This Market Operations Statement confirms the pricing of the Reserve Bank’s standing facilities and ESAS accounts, and the Large Scale Asset Purchase (LSAP) Programme.

Pricing is as follows:

• ESAS balances – cash that ESAS account holders have on deposit at the Reserve Bank in their ESAS accounts will be remunerated at the Official Cash Rate (OCR).
• Bond Lending Facility – bonds lent through the Bond Lending Facility will be lent at the OCR less 50 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.

View the details of the Bank's liquidity facilities including applicable haircuts for eligible securities, eligibility criteria and operational guidelines

On 24 June, the Monetary Policy Committee maintained the LSAP programme size at $60 billion. The LSAP programme includes NZ Government Bonds, Local Government Funding Agency Bonds and NZ Government Inflation-Indexed Bonds. The programme size includes all bonds purchased to date under the LSAP programme.

Within this programme size, the Reserve Bank reserves the right to alter the composition and pace of purchases at its discretion, to achieve the objectives of keeping interest rates low and to support market functioning.

Read the June Monetary Policy Review news release - Monetary Policy easing to continue

For further information contact:

Vanessa Rayner
Head of Financial Markets
[email protected]

Dean Hill
Manager, Financial Markets
[email protected]

Media contact:

Patrick O’Meara
Senior Adviser External Stakeholders
Email: Patrick.O’[email protected]