So far the bank has printed and spent $48.5b buying back government bonds, and in theory it could spend up to another $51.5b by June next year before running into its Government-imposed cap. But the central bank is also required under an agreement with the Government not to buy more than 60 per cent of the bonds on issue and it is this restriction that looks set to cut in first.
ROBERT KITCHIN/Stuff
The Reserve Bank may have about $30b left to print and spend on ‘QE’ based on current forecasts of how much new debt the Treasury may issue before June next year.
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Central banks prepared to risk higher inflation, RBNZ s Orr
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UPDATE 1-Central banks prepared to risk higher inflation, RBNZ s Orr
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