RBNZ Accidentally Discloses Decision Ahead Of Monetary Policy Announcement
The Reserve Bank of New Zealand (RBNZ) said on Wednesday it had accidentally disclosed information about its monetary policy announcement last week to a group of financial services firms before it was made public.
- Last Updated: November 18, 2020, 9:33 IST
- FOLLOW US ON:
WELLINGTON: The Reserve Bank of New Zealand (RBNZ) said on Wednesday it had accidentally disclosed information about its monetary policy announcement last week to a group of financial services firms before it was made public.
RBNZ introduced a new funding-for-lending programme (FLP) on Nov. 11 that would reduce costs for lenders, while holding its benchmark interest rate at record lows.
In a letter sent to non-bank financial institutions the central bank disclosed its decision to introduce FLP about 45 minutes before it was publicly announced at 2 p.m. local time (0100 GMT), RBNZ said in a statement.
The letter, however, did not contain specifics of the FLP, it added.
“The limited information contained in the letter is unlikely to have provided anyone with a market advantage, but the Reserve Bank is taking the matter seriously,” RBNZ said.
The bank’s new programme and its commitment to hold interest rates steady until March had sent the New Zealand dollar to the highest since March 2019 that day.
The central bank said it has engaged Deloitte to independently review internal processes and will comment further on any outcomes when the review is complete.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor