Geoff Simmons Identifies an Important Reserve Bank Tool to Keep a Lid on the Flying Kiwi Dollar
Geoff Simmons suggests that the Reserve Bank look to increase the Core Funding Ratio for New Zealand banks. The move would protect against an influx of foreign money flooding in to New Zealand banks after the upcoming interest rate hike by forcing New Zealand banks to fund its lending through long-term deposits. This would reduce the impact of the rate rise on our dollar and the crippling effect that the high New Zealand dollar has on our exporters and manufacturers.
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