Alternative Monetary Policy Decisions
Decisions involving Alternative Monetary Policy in New Zealand.
Expanded Large Scale Asset Purchases - 12 August
12 August 2020
The Monetary Policy Committee has agreed to significantly expand the LSAP programme potential to $100bn, up from the previous $60bn limit.
The Reserve Bank’s Large Scale Asset Purchases (LSAP) programme will buy up to $100bn of NZ Government Bonds, Local Government Funding Agency (LGFA) Bonds and NZ Government Inflation-Indexed Bonds in the secondary market by June 2022.
More Information
Media release and Record of Meeting
MOF/RBNZ Memorandum of Understanding regarding the use of alternative monetary policy tools (PDF 883KB)
Letter from the Reserve Bank to the Minister of Finance – August 2020 (PDF 85KB)
Letter of Indemnity from the Minister of Finance – 6 August 2020 (PDF 80KB)
Response letter from the Minister of Finance – 9 August 2020 (PDF 80KB)
Expanded Large Scale Asset Purchases - 13 May
13 May 2020
The Monetary Policy Committee has agreed to significantly expand the Large Scale Asset Purchase (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.
More information:
Media release and Record of Meeting
Letter from the Reserve Bank to the Minister of Finance – 30 April 2020 (PDF 79KB)
Letter of Indemnity from Minister of Finance – 10 May 2020 (PDF 324KB)
Expanded Large Scale Asset Purchases - 7 April
7 April 2020
The Reserve Bank has added $3 billion of Local Government Funding Agency (LGFA) debt to its Large Scale Asset Purchase programme (LSAP). This represents approximately 30 percent of the total LGFA debt on issue, and takes the total size of the LSAP to $33 billion over 12 months.
More information:
Media release and Record of Meeting
Letter from the Reserve Bank to the Minister of Finance (PDF 76KB)
Letter of Indemnity from Minister of Finance (PDF 706KB)