What is the Reserve Bank's new plan to cut interest rates?
The FLP is designed to help the RBNZ pass on cheaper borrowing costs to retail lenders, in turn reducing borrowing costs for businesses and mortgage holders.
The programme, expected to be worth between $30 billion and $50 billion, is the latest step taken to reduce interest rates by the central banks following the Covid crisis.
While the RBNZ is expected to leave the official cash rate unchanged today, it is likely to reveal the scale of the FLP and explain how it will help banks, businesses and individuals.
The FLP will see the central bank provide funding to retail banks at a cheaper rate, which could be set close to the OCR, or even lower.
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