RBNZ Assistant Governor Christian Hawkesby said in a speech, “in an environment of where the Official Cash Rate (OCR) is near its lower limits, the size and composition of our balance will inevitably become a more active tool for our monetary policy decisions.”

He also emphasized the goal of the Large Scale Asset purchase program was “not to maximise our profits or dividend from the activities on our balance sheet”. Instead, “we use our balance sheet to achieve our ultimate policy objectives of monetary and financial stability.”

“We recently expanded our LSAP programme up to $100 billion and are preparing the groundwork to use additional tools if needed such as a negative OCR or Funding for Lending Programme (FLP) in order to achieve our remit and ensure the long term prosperity of New Zealanders,” Hawkesby added.

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Full speech here.

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