Reserve Bank of New Zealand increase cash reserves

The Reserve Bank of New Zealand said on Friday 30 June it would increase the level of liquidity in the money market, but added that did not signal a change in monetary policy.

In a report following the review of liquidity management, the central bank said it would raise the settlement cash level, or the amount left in the banking system each day, to a likely range of $5-$7 billion from the current $2 billion.

The central bank said it would start injecting cash into the system from 3 July and c