NZDMO borrows more than it needs
While the Reserve Bank of New Zealand left the OCR unchanged at 2.5 per cent and pushed the timing of the first increase out to later in the year, the NZDMO announced that it was increasing its borrowing program for this financial year. It has already raised the NZ$10.5 billion it had previously said it would raise (a NZ$2 billion increase on the original NZ$8.5 billion requirement), and so now it will continue its regular issuance - to meet market demand, it said - and will raise another NZ$2.0 billion. Forecasts for borrowings in subsequent years remain unchanged at NZ$10.5 billion in 2010/11, NZ$12.5 billion in 2011/12 and 2012/13 and NZ$7.5 billion in 2013/14.