The Reserve Bank is removing the last remaining temporary liquidity facility put in place during the financial crisis.It is the regular Tuesday open market operation (OMO), which involves repurchase transactions for maturities of up to three months.There
The Reserve Bank is removing the last remaining temporary liquidity facility put in place during the financial crisis.
It is the regular Tuesday open market operation (OMO), which involves repurchase transactions for maturities of up to three months.
There had recently been very little use of the facility, the Reserve Bank said, and it retained the ability to offer term maturity dates at its discretion in its normal OMOs.
Reserve Bank deputy governor Grant Spencer said financial market conditions continued to stabilise.
Use of the Reserve Bank's special facilities, specifically for the purpose of accessing term funding, had been low with New Zealand banks able to access funding from their normal market sources, he said.
The change will take effect from December 1, with the final regular Tuesday OMO scheduled for November 30.
Remaining measures initiated during the crisis would be reviewed in coming months, particularly the range and credit quality of securities that were repo eligible in Reserve Bank operations.
Mr Spencer said the decisions had no implications for the stance of monetary policy.
