RBNZ's new bond lending facility

The Reserve Bank of New Zealand announced on Thursday 14 July that, as from 18 July 2005, it will operate a bond lending facility.

By providing liquidity to the government securities market through this facility, it is expected that the Bank will be able to alleviate the occasional pressure that arises in the New Zealand inter-bank payments and settlement system. The decision to offer this facility reflects the Bank's statutory objective to promote the soundness and efficiency of the financial