PHOTO: The Reserve Bank governor revealed today that every single bank has asked him to reinstate tight lending restrictions. Source: 1 NEWS
The Reserve Bank has stepped up its backing for the economy with a new lending programme for banks at rock bottom interest rates.
The central bank’s monetary policy committee has held the official cash rate (OCR) at a record low 0.25 per cent, as expected, but said a new Funding for Lending Programme (FLP) is ready to be rolled out next month.
“The committee agreed that monetary policy will need to remain stimulatory for a long time to meet the consumer price inflation and employment remit, and that it must remain prepared to provide additional support if necessary,” it said in a statement.
It reaffirmed that it would continue its quantitative easing through its $100 billion government bond-buying programme.
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