You may have just signed away a fortune
Yesterday, the Reserve Bank of NZ was given permission to expand its Quantitative Easing program up to $100 billion. Under this scheme the RBNZ is using cash to buy government stock. The aim is to depress long term yields to make borrowing cheaper. But should world interest rates start rising, the value of those bonds will drop.
Potential losses incurred by the RBNZ under this scheme could run into billions of dollars. Just so you know what you may have got yourself into, the Minister of Finance has signed a "memorandum" which opens the door to you, the taxpayer, reimbursing the RBNZ for such losses.
Here is the Memorandum: