RBNZ launches funding for lending programme

Adrian Orr
Adrian Orr
Photo: Banco Central de Chile

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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