Adding a Funding for Lending Programme to the toolkit: Funding for lending programme ready to launch

  • The RBNZ looks set to deploy a funding for lending programme (FLP) before the end of the year. Details of the scheme are set to be announced in the November Monetary Policy Statement, at which stage we expect the RBNZ to unveil its timetable for FLP implementation.  
  • We expect a sizeable scheme (in the region of $30bn), over a 3 to 5-year term and 12-month implementation window, with the RBNZ potentially offering a floating and capped interest rate to banks at around the OCR that would fall if the OCR were to be cut. The RBNZ will want to keep the scheme simple so as encourage strong take-up and may offer incentives to promote more lending in some key pockets.
  • We expect the FLP to have only a modest impact on the composition of bank funding and customer interest rates, and hence on prospective OCR settings. If the FLP has a strong take-up and proves highly effective in further lowering customer interest rates and boosting economic activity, it will reduce the need for more policy support via other means.


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Nick Tuffley

ASB Chief Economist

Since starting out in 1997 as an economist, it's fair to say Nick has seen a few hair-raising moments over the years, including the Asian Financial Crisis and the Global Financial Crisis.

One of Nick's strengths is his ability to communicate complex ideas in a readily understandable and entertaining way.  He thrives on helping people understand the economic environment to help enrich the quality of their business or personal life. He’s proud to lead a team that has won two Forecast Accuracy Awards from Consensus Economics, and has a strong track record with their Official Cash Rate and dairy price forecasts. 

Nick grew up in Christchurch and graduated with a Master of Commerce degree from the University of Canterbury.  He learned his economic ropes at the Reserve Bank of New Zealand before a long stint as a Senior Economist at Westpac, and joined ASB as Chief Economist in 2007.

Mark Smith

Senior Economist

Mark joined ASB in 2017, with over 20 years of public and private sector experience working as an economist in New Zealand and the UK.

His resume includes lengthy stints at ANZ and the Reserve Bank of New Zealand, and he has also worked at the Bank of England, HM Treasury and the New Zealand Transport Agency. Mark's areas of specialisation include interest rate strategy, macro-economic analysis and urban economics.

Born and bred in the Waikato, Mark studied at Waikato University where he graduated with a Master of Social Sciences, majoring in Economics.

Mark's key strengths are the ability to use his extensive experience, inquisitive nature, analytical ability, creativity and pragmatism to dig a little deeper and to deliver common sense solutions to tackle complex problems.

When not at work Mark likes to travel, keep fit and spend time with his friends and family.