RBNZ launches funding for lending programme
Central bank avoids taking rates negative but says the policy remains an option
The Reserve Bank of New Zealand has become the latest central bank to adopt a funding for lending programme (FLP), as it seeks new ways to stimulate the economy.
From December, the central bank will offer commercial banks funding at a three-year maturity at the policy rate, currently 0.25%. “The FLP will reduce banks’ funding costs and lower interest rates,” governor Adrian Orr said in a statement.
Banks will be able access initial funding worth 4% of their outstanding loans to households
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