The Reserve Bank of New Zealand has published a guide to their additional monetary policy (AMP) tools in the wake of the COVID-19 pandemic in 2020.
The new tools that have been used in the past year include:
- 'forward guidance'- we committed to keep the Official Cash Rate at 0.25 percent for a year
- the Large Scale Asset Purchase (LSAP) programme to buy government bonds in order to lower longer-term interest rates. Additional purchases under this programme are currently on hold as of 23 July
- and the Funding for Lending (FLP) to help banks borrow at a low cost in order to support their customers.
Plenty more info at the just published link here
