Reserve Bank of New Zealand
New Zealand moves forward with climate action
New Zealand’s resolve to address climate change accelerated in late 2021 as the Reserve Bank of New Zealand and the External Reporting Board detailed plans to introduce stress tests and standards underpinning mandatory climate-reporting legislation. The moves follow New Zealand’s pledge at COP26 to reduce emissions by 50 per cent of 2005 levels by 2030, an update from the previous 30 per cent commitment.
RBNZ turns up the heat on climate change action
The Reserve Bank of New Zealand aims to introduce a climate change scenario-based industry stress test by 2023 as part of its focus on the risk climate change poses to financial stability. It also says it is paying close attention to global moves to incentivise lending to environmental transition through the banking sector regulatory regime.
COVID-19 outbreak ices New Zealand OCR rise – for now
The Reserve Bank of New Zealand left the official cash rate on hold on 18 August, noting that a new nationwide lockdown makes the decision the best fit for its “no regrets” policy strategy. Before the latest COVID-19 outbreak began – just a day before the latest monetary-policy meeting – analysts and markets almost universally expected the reserve bank to begin a post-pandemic tightening cycle.
Back on track in the New Zealand high-grade market
At the start of June, KangaNews and Westpac brought together New Zealand’s biggest government-sector issuers in Wellington to discuss the path of their market from the depths of the crisis back to functionality, the new challenges of 2021 and the outlook for a raft of factors – including sustainable-finance evolution, inflation-linked issuance and the long-dated market.
Market function at a critical juncture
The KangaNews Debt Capital Markets Summit 2021 virtual event took place on 9 June, ahead of another important period for the Australian economy and market’s emergence from the COVID-19 crisis. Discussions throughout the day reiterated the importance of Reserve Bank of Australia policy settings for determining the path of both.
Curtain falls on LSAP but market set to play on
The Reserve Bank of New Zealand’s Monetary Policy Committee decided on 14 July to halt its large-scale asset purchase programme before the end of the month due to the trajectory of New Zealand’s recovery from COVID-19. New Zealand is ahead of the developed world in its tightening cycle but analysts believe the market and economy is ready for this withdrawal of stimulus.
