The Reserve Bank may introduce cheap funding for banks, earlier than expected
The Reserve Bank may introduce cheap funding for banks, earlier than expected
24 September 2020
It's held the Official Cash Rate at point two five per cent, as expected.
However, it's considering a Funding for Lending Programme -- which would help offset the impact of negative interest rates on banks, should it become necessary next year.
Head of fixed income at Fisher Funds, David McLeish says it seems the Reserve Bank is interested in exploring the opportunity to launch the lending programme -- even before moving to a negative OCR by March next year.
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