RBNZ: Term for lending has been extended to five years from three years

The Reserve Bank of New Zealand (RBNZ) announced extension of its lending term from currently three to five years during early Thursday. Earlier during the day, New Zealand ‘s Finance Minister Grant Robertson also announce increase in limits for business loans from New Zealand dollar 500,000 to 5 million.

Key quotes

Will continue to offer to lend funds to banks at the official cash rate.

New facility will be available to use from 26 August and now runs through to 1 February 2021.

NZD/USD keeps recovery moves…

Following the announcement, NZD/USD pair extends the pullback from 0.6544 to 0.6570, up 0.13% on a day.