Reserve Bank Market Operations 14 May

This Market Operations Statement confirms the pricing of the Reserve Bank’s standing facilities and ESAS accounts, and the changes to 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.

Full details of the Bank's liquidity facilities including applicable haircuts for eligible securities, eligibility criteria and operational guidelines are available in the domestic markets section of our website.

On 13 May, the Monetary Policy Committee agreed to expand the LSAP programme potential to $60 billion, up from the previous $33 billion limit. The LSAP programme includes NZ Government Bonds, Local Government Funding Agency Bonds and, now, NZ Government Inflation-Indexed Bonds.

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. The May Monetary Policy Statement is available.

For further information contact:

Vanessa Rayner
Head of Financial Markets
[email protected]

Dean Hill
Manager, Financial Markets
[email protected]

Media contact:
Brendan Manning
Senior Adviser External Stakeholders
DDI: +64 9 366 2643 | MOB: 021 923 217
Email: [email protected]govt.nz