New Zealand Reserve Bank implements buy-back measures to boost economy
The Reserve Bank's Monetary Policy Committee (MPC) decided on Monday to implement a Large Scale Asset Purchase program (LSAP) of New Zealand government bonds to stabilize the market.
The program will purchase up to 30 billion NZ dollars (17 billion U.S. dollars) of New Zealand government bonds, across a range of maturities, in the secondary market over the next 12 months.
The program aims to provide further support to the economy, build confidence, and keep interest rates on government bonds low, said an MPC statement.
The negative economic implications of the coronavirus outbreak have continued to intensify, and the committee agreed that further monetary stimulus is needed to meet its inflation and employment objectives, it said.
"Globally, the number of people infected with the virus has increased rapidly and measures to contain the outbreak have become more restrictive. Global trade and travel, and business and consumer spending have been curtailed significantly," it added.