KEY POINTS:
Reserve Bank acting governor Grant Spencer said today that his team is closely following developments in the financial markets, both domestically and offshore.
Central banks in European and North American markets injected cash into their local economies earlier this week to counter acute credit shortages, which were sparked by the crisis in the US prime loan market.
"Following the recent disruptions in global credit markets, the Reserve Bank has been closely monitoring the impact on the domestic markets and liquidity conditions," said Mr Spencer.
"While some additional pressures have been present, we believe the level of cash within the banking system is adequate and markets continue to function satisfactorily.
"The bank will continue to monitor conditions closely and stands ready
to provide additional liquidity should that be necessary," Mr Spencer concluded.
- NZHERALD STAFF
