Liquidity Management Review - Consultation on Open Market Operations and the Committed Liquidity Facility

Results updated 19 Mar 2026

In 2025 we sought feedback on the key design considerations and operational parameters for our Open Market Operations (OMOs) and the forthcoming Committed Liquidity Facility (CLF).

The consultation was a part of the Reserve Bank’s review of its liquidity management framework (the Liquidity Management Review). The Reserve Bank manages liquidity in the New Zealand banking system so banks can meet daily payment obligations and short-term interest rates stay near the Official Cash Rate (OCR). To do this, the Reserve Bank conducts market operations under the liquidity management framework and has facilities that allow participants to borrow and/or deposit cash with the Reserve Bank. The review was prompted by changes in the liquidity environment, following policy responses to the COVID-19 pandemic.

The consultation closed on 31 October 2025. We received 19 submissions overall.

Based on feedback from the consultation and consideration of our key objectives, we have announced some changes to our approach to OMOs. This includes moving to a full allotment allocation method.

On the CLF, the feedback has been used to inform some in-principle decisions and has highlighted some areas for further consideration. The CLF is on track to be in place by December 2028, when the Deposit Takers Act standards come into effect. 

A summary of submissions and copies of the submissions are available below.

Summary of Submissions and Key Decisions (PDF, 604KB)

View submitted responses below where consent has been given to publish:

Submissions (ZIP, 8.2MB)