July 28, 2022 - 11:54 AM 214 views
When Interest.co.nz posed a number of queries about the FLP, the Reserve Bank of New Zealand (RBNZ) stated, "The Funding for Lending Programme (FLP) is working essentially as intended and it will be staying in place until its scheduled termination in December."
The RBNZ introduced the FLP in December 2020 to give the economy more monetary boost.
"The FLP will expire in December 2022. For this weapon to continue to be credible for use in the future, if necessary, dedication to the FLP is crucial.”
"In June 2022, the drawdown window for the FLP's initial allotment expired. Any unused component of this allocation, which was around two thirds, used, is no longer accessible. Up to December 2022, the additional allocation is still available.”
"In general, the FLP has performed as expected and as intended. The disparity between wholesale interest rates and rates for lending to households and businesses, or swap rates, is the best indicator of this.
The Market Reaction
At the time of writing, NZD/USD is holding 0.6250, essentially unchanged from the previous day.
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