MNI BRIEF: QE Won't Reach NZD100 Billion, Says RBNZ

The Reserve Bank of New Zealand conceded that its Large Scale Asset Program (LSAP) will not purchase NZ$100 billion in bonds by June 2022 due to reduced debt issuance by the government, which has resulted in "less upward pressure" on government bond yields.

In its Monetary Policy Statement, the RBNZ said that NZD100 billion was a "limit, not a target" for the LSAP program. The RBNZ has previously said it will purchase a maximum of 60% of NZ government debt, but with this standing around NZD130 billion, the ceiling would fall short of NZD100 billion.

The statement noted there was "less scope" for LSAP purchases. "The committee acknowledged that the LSAP program could not reach the NZD100 billion limit by June 2022," it said.