NZ … don’t worry we are on the right track …
The value of Government bonds and Treasury bills on issue hit $106 billion in the 11 months to May, according to the latest available set of accounts. This was 75 per cent more than in May 2019 – pre-Covid.
The uptick in bond issuance contributed towards core Crown borrowings more than doubling between 2019 and 2023 to $194b.
Another major contributor to this increase stems from the Reserve Bank’s “money printing” or Large-Scale Asset Purchase (LSAP) programme, which saw banks’ settlement accounts at the Reserve Bank balloon seven-fold between 2019 and 2023 to $49b.
All up, core Crown borrowings has been rising every year, from 32 per cent of gross domestic product (GDP) in May 2019 to 50 per cent in May 2023.
