RBNZ Releases Summary Of Submissions And Key Decisions From Liquidity Management Consultation

The Reserve Bank has published a Summary of Submissions and Key Decisions paper on the Liquidity Management Review consultation. Decisions on the design of Open Market Operations (OMO) are expected to come into effect from 2 April 2026.

The Reserve Bank has been reviewing its liquidity management framework following changes to the liquidity environment in recent years.

Based on feedback from the consultation and consideration of our key objectives, we intend to make changes to our approach to OMO and will start offering weekly full allotment operations to inject liquidity.

“Weekly full allotment operations will provide market participants with certainty, allowing them to determine their demand for liquidity at a fixed spread to the OCR,” Director of Financial Markets Adam Richardson says.

The new weekly operations will complement the Overnight Reverse Repo Facility, that is available daily to market participants.

“OMO are a critical tool for us to manage liquidity, and we will continue to monitor the impact of the new approach and ensure it is consistent with effective monetary policy implementation, while also facilitating market liquidity and supporting financial stability,” Mr Richardson says.

The first operation under the new framework will take place on Thursday 2 April 2026 at 11.30am NZT.

The consultation paper also sought input on design considerations for a Committed Liquidity Facility (CLF). Feedback on the CLF has been used to inform in-principle decisions and help identify areas where additional work is required. The CLF is on track to be in place by December 2028, when the Deposit Takers Act standards come into effect.

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