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RBNZ "Accidentally Leaked" New Stimulus to Financial Firms Early
New Zealand’s central bank said it accidentally disclosed sensitive information from its latest Monetary Policy Statement to a group of financial services firms before the official publication time last week.
The information was in a letter sent to non-bank financial institutions 45 minutes before the official release of the policy statement at 2 p.m. on Nov. 11 in Wellington, the Reserve Bank said in a statement Wednesday. The letter confirmed the RBNZ’s decision to introduce a new round of monetary stimulus in the form of a Funding for Lending Program, but did not contain specifics, it 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,” it said. Accounting company Deloitte has been engaged to conduct an independent review of the bank’s internal processes. In its Nov. 11 policy statement, the RBNZ announced fresh stimulus in the form of cheap loans to banks aimed at further reducing interest rates to bolster the economic recovery. It also painted a more upbeat economic outlook, prompting a strong rally in the New Zealand dollar.
In the letter, released by the RBNZ today, Deputy Governor Geoff Bascand discusses the Funding for Lending Program and its potential impacts. “We are using this tool to help ensure a robust recovery of the New Zealand economy,” he writes.
One part of the letter is blanked out.
It is not the first time the central bank has had to deal with the leak of market-sensitive information. In 2016 it was forced to cease holding lockups for media ahead of policy announcements after a journalist leaked its decision to cut interest rates before the official release time.
https://www.bnnbloomberg.ca/rbnz-accidentally-leaked-new-stimulus-to-financial-firms-early-1.1523970