RBNZ announces a package of measures to support financial system functioning during the coronavirus pandemic. A Term Auction Facility is set up to give banks access to term funding, with collateralized loans available out to a term of 12 months. That should alleviate pressures in the funding markets. Other measures include funding in the fx swap markets, re-establishment of a USD swap line, supporting liquidity in the government market, and measures to have a greater control over short-term interest rates.
“The measures we are implementing today provide additional support to domestic financial markets. We will ensure our operations make financial markets operate smoothly,” Assistant Governor Christian Hawkesby said. “We are working in tandem with the banks, the wider financial market community, and the Government.”
