Counterparties are deemed to have agreed to an inter-day borrowing each time an ORRF transaction is triggered and incur a charge equivalent to the Overnight Reverse Repo Rate.
The ORRF proved useful during the Global Financial Crisis (GFC).
21) The ORRF remains particularly relevant to the New Zealand financial system given Continuous Linked Settlement (CLS) (22) payments and the recent introduction of Settlement Before Interchange (SBI), (23) which occur predominantly during the evening session (i.
In addition, the implied NZD interest rates in the foreign exchange swap market are now much less volatile and are well within the 50-basis point band between the OCR and the ORRF
the discount margin applied in the Bank's ORRF to be standardised at 50 basis points above the OCR for all eligible securities (i.
extension of the ORRF to allow loans to a maximum maturity of 30 days.
Treasury bills issued after 13 July 2006 were not eligible for use in the Reserve Bank's Autorepo facility; however, they continued to be eligible for use in the Reserve Bank's ORRF.
Government bonds continued to be eligible securities in the ORRF.
Treasury bills continue to be eligible securities in the ORRF.
The charge for rolling an intra-day transaction into an inter-day transaction is 5 basis points above the ORRF facility (ie 30 basis points above OCR).
Counterparties using the ORRF facility are charged at 25 basis points above the OCR, the upper bound of the corridor.
Use of the ORRF is charged at 25 basis points above the OCR.