Rayner: A Strategic View of Te Pūtea Matua’s Balance Sheet

Reserve Bank Head of Financial Markets Vanessa Rayner made the following points in a speech:

• "The actions taken over the past year mean that the Bank's balance sheet will remain large for a long time, and new monetary policy tools will likely remain mainstream for as long as global central bank policy rates remain at, or near, record lows."
• "Some of our assets from the Large Scale Asset Purchase (LSAP) programme have a maturity of up to 20 years in the future. Held to maturity, it would take decades for these assets to mature and roll-off the balance sheet, irrespective of any reinvestment policy decisions."
• "Innovation and evolution in Te Pūtea Matua's balance sheet, currently at $85 billion, will continue to support the Bank's monetary policy and financial stability objectives, including climate change, well into the future."
• "When looking at the future of our balance sheet, it should come as no surprise that climate change and sustainable finance is at the forefront of our minds."
• "One way the Bank can give effect to its climate change strategy is through the use of its balance sheet."
• "The Reserve Bank is considering how to incorporate sustainability objectives into its balance sheet operations. There are a number of opportunities that the Bank will be exploring over the year ahead and learning from global central banking peers."