The Reserve Bank is holding the line on interest rates till the next review of monetary policy scheduled for 23 October, according to Governor Alan Bollard.
Citing the high quality of assets held by New Zealand banks and measures introduced earlier in the year to improve liquidity, Bollard announced the Reserve Bank will ease liquidity further by being willing to lend on fully secured Residential Mortgage-Backed Securities (RBMSs) that may not yet have received formal credit ratings.
In volatile trading, the Kiwi dollar fell to US57.85c yesterday before pulling back into the 61c range.
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