We subsequently implemented a Large Scale Asset Purchase (LSAP) programme aimed at lowering and flattening the New Zealand wholesale interest rate curve. The purpose of this was to drive retail interest rates lower, to be consistent with our dual monetary policy mandate. This action has proved effective (Figure 8).
In addition, although the proportion of small businesses applying for credit did not vary much by age of the firm, younger firms were more likely than older ones to be denied credit.