In July 2007 the Reserve Bank added un-hedged foreign currency assets to its foreign reserves portfolio. This means that some of the Bank’s reserves are now funded directly in New Zealand dollar (NZD)-denominated borrowings as opposed to in foreign currency. When reserves are fully hedged,...

This article talks about the offshore market for borrowing and lending in New Zealand dollars (commonly referred to as the `Eurokiwi' market).

The structure and management of the Reserve Bank’s balance sheet has changed significantly over the last five years. A big area of change has been in the way that foreign reserves are financed. The Reserve Bank no longer finances its foreign reserves on a fully currency-hedged basis, and now...

Last year the Reserve Bank concluded a review of its foreign exchange intervention policy. The review resulted in a recommendation to the Government that the Bank be given the capacity to broaden the objectives of foreign exchange intervention towards helping the Governor achieve monetary policy...

A model of mortgage rate setting is presented and the behaviour of mortgage rates over the last year is discussed with reference to the predictions of the estimated model.