The Reserve Bank moved to ease liquidity on the New Zealand financial system

While Governor Alan Bollard of the Reserve Bank said that there is no immediate problem in the New Zealand financial system, the Reserve Bank stands ready to support its liquidity if the need arises. He also said that he saw no need for New Zealand to follow other major financial institutions around the world and inject large amounts of capitals into the market.

In suit with his statement, Governor Alan Bollard went onto say that the Reserve Bank is expanding the range of securities it will accept from banks for short-term it provides them. In order to ease short term pressure on New Zealand financial institutions, the Reserve Bank will now accept longer term securities of up to six months.