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The central bank has been buying government bonds and making cheap loans available to banks to help keep a lid on interest rates and ensure sufficient liquidity in the financial system.

Source: Reserve Bank of New Zealand 10 March 2021 – The Reserve Bank – Te Pūtea Matua today announced that it will be removing some of the temporary liquidity facilities put in place during the COVID-19 pandemic. The specific measures include: The removal of the Term Auction Facility (TAF) where banks have been able to borrow funds for 3, 6 and 12 months using eligible collateral, including NZ Government securities, registered bank bills and Residential Mortgage Backed Securitie...

Press Release – Reserve Bank The Reserve Bank Te Ptea Matua today announced that it will be removing some of the temporary liquidity facilities put in place during the COVID-19 pandemic. The specific measures include: The removal of the Term Auction Facility (TAF) where … The Reserve Bank – Te Pūtea Matua today announced that it will be removing some of the temporary liquidity facilities put in place during the COVID-19 pandemic. The specific measures include: The removal of the Term A...

Low demand a factor in Reserve Bank axing Covid-19 liquidity initiatives © Getty In total, close to $1.3 billion dollars of funds were accessed via the Term Auction Facility, the largest sums in the early days of the facilitys operation. The Reserve Bank has pulled some of the emergency liquidity measures it put in place at the height of the Covid-19 pandemic in New Zealand. In March last year, the central bank introduced a Term Auction Facility, which allowed banks to borrow funds for up to...