Reserve Bank to extend Large Scale Asset Purchases

The Reserve Bank of New Zealand has added $3 billion of Local Government Funding Agency (LGFA) debt to its Large Scale Asset Purchase programme (LSAP).

Including New Zealand government bonds, this takes the total size of the LSAP to $33 billion over 12 months. 

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

The first auction of LGFA bonds as part of the LSAP will occur in the week beginning 14 April. 

The operational procedures will be consistent with those originally set out in the Market Notice of 23 March 2020.

A pre-auction announcement will be made at 10:00am on the day of the auction confirming the details of the auction. Auction details will be announced on Refinitiv (RBNZ03) and Bloomberg (GPGX 1549 3 1).

As is the case with all Reserve Bank operations, offers may only be submitted by eligible counterparties during the auction window.

The operating rules and guidelines applying to participation in the auction will be the same as the Reserve Bank’s Open Market Operations. These details, including application for participation in operations, can be found on the Reserve Bank's website.

The Reserve Bank will also continue to support bond market functioning as previously announced.

For further operational information contact:
Dean Hill
Manager, Financial Markets
[email protected]

Media Contact:
Oliver Bates
Manager, External Stakeholders
DDI: +64 4 474 8627
Email: [email protected]