The Reserve Bank (RBNZ) has admitted to accidently sending a letter about its latest Monetary Policy Statement to a “small group” of firms 45 minutes ahead of the document being published on November 11.
While Monetary Policy Statements are highly market-sensitive, the RBNZ said, “The limited information contained in the letter is unlikely to have provided anyone with a market advantage, but the Reserve Bank is taking the matter seriously.”
The letter was sent to non-bank deposit takers (NBDT).
It confirmed the RBNZ’s well-signalled decision to introduce a Funding for Lending Programme (FLP), but didn't include specifics on the scheme.
The letter followed a period of consultation on the $28 billion FLP.
Its purpose was to explain why most NBDTs would probably not be able to access the programme. Building societies and credit unions have since voiced their disappointment over this.
"NBDTs would not have assets (collateral) eligible for this facility; additionally, we appreciate that the costs of establishing the required infrastructure is likely to be prohibitive," the RBNZ said in the letter.
The RBNZ has commissioned Deloitte to review its internal processes.
It didn’t say how many institutions it sent the letter to and won’t make further comment until the review is complete.
18 Comments
“ Omnes Auctoritate Nihil Responsabilitas” thus rides forth The Brown Cardigan Brigade to the ultimate goal of stifling and drowning every true and reasonable facet of everyday life in New Zealand. There is no greater threat to democracy and society than a civil service that is opinionated. unaccountable and self serving. Folks, apart from a thin red line of good souls, that is exactly what has invaded New Zealand.
Sending market sensitive information early could certainly benefit friends, just like pulling certain levers at the right time, thus increasing house prices could benefit friends. It sure is a good job that this lot at the RBNZ are trustworthy and have the whole countries best interests at heart. It would be a nightmare if they decided to just protect and reward certain people and completely abandon and ruin others.
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