The Reserve Bank of New Zealand (RBNZ) has pledged to temporarily reduce the premium it charges banks to access overnight funds from the central bank, to ease the transition to a new retail payments system.
In a statement released on Wednesday, the central bank said the cost of overnight borrowing will be lowered from 50 basis points to 25bp over the official cash rate between January 30 and April 30 next year.
At present, retail interbank payments are settled as bilateral net payments at the en
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