dec 7, 2020 - Funding for Lending Programme (FLP) - starts

Description:

The FLP works by lowering interest rates and encouraging households and businesses to spend and invest.

The programme allows eligible banks to borrow directly from us at the official cash rate (OCR). The borrowing rate will adjust over the term of the transaction if the OCR changes, whether up or down.

As banks will be less reliant on more expensive deposits and wholesale borrowing, the programme lowers their overall funding costs. Banks can then pass these reductions on to their customers through lower mortgage and business lending rates.

Source: https://www.rbnz.govt.nz/monetary-policy/monetary-policy-tools/funding-for-lending-programme

Added to timeline:

Date: