RBNZ supports plan for ‘fallback’ benchmark rate
New Zealand’s benchmark rate-setting body selects the central bank’s policy rate as fallback option
The Reserve Bank of New Zealand has endorsed the decision to select the central bank’s policy rate as a fallback option for the local benchmark rate.
The New Zealand Financial Markets Association (NZFMA) – the country’s professional body for wholesale banking and financial markets – chose the official cash rate to act as the risk-free benchmark rate in the event of disruption to the main benchmark rates.
The central bank’s policy rate will now be adopted in contracts that reference New Zealand
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