RBNZ boosts liquidity with bill buyback

The Reserve Bank of New Zealand said that it will accept New Zealand bank bills in its overnight reverse repurchase facility from 24 August.

The cost of using the bills is 9.25%, 100 basis points above the central bank's official cash rate.

Grant Spencer, the deputy governor of the central bank, said: "Pressures have persisted over the past week warranting steps to ease liquidity conditions in the interbank market."

Spencer added: "This measure is aimed solely at easing short-term interbank l