The Reserve Bank of New Zealand published a Summary of Submissions and Key Decisions from its Liquidity Management Review consultation, confirming a shift in its approach to Open Market Operations (OMO) through weekly full allotment liquidity injections at a fixed spread to the Official Cash Rate (OCR). The redesigned OMO settings are expected to take effect from 2 April 2026. The weekly operations are intended to provide market participants with greater certainty over access to liquidity and will complement the daily Overnight Reverse Repo Facility. The first operation under the new framework is scheduled for 2 April 2026 at 11.30am NZT, with the Bank expecting to monitor the impact to ensure consistency with effective monetary policy implementation while facilitating market liquidity and supporting financial stability. Input on design considerations for a Committed Liquidity Facility (CLF) informed in-principle decisions and identified areas requiring further work. The CLF remains on track to be in place by December 2028, aligned with the point when standards under the Deposit Takers Act come into effect.
Reserve Bank of New Zealand 2026-03-19
Reserve Bank of New Zealand sets weekly full allotment open market operations from 2 April 2026 and outlines in-principle Committed Liquidity Facility decisions
The Reserve Bank of New Zealand released a Summary of Submissions and Key Decisions from its Liquidity Management Review, confirming weekly full allotment liquidity injections at a fixed spread to the Official Cash Rate. This new Open Market Operations framework, effective 2 April 2026, aims to enhance market liquidity and support financial stability. Additionally, the Committed Liquidity Facility will be operational by December 2028, aligning with the Deposit Takers Act standards.