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22 Sep 2014
Views on NZ economy unchanged post election result - BNZ
FXStreet (Bali) - There is little cause to alter the views on the NZ economy and financial markets, notes Bank of New Zealand, following the clear victory by the national coalition on Saturday’s General Election.
Key Quotes
"Today’s Markets Outlook can be shorter than it might have otherwise been, given the clear-cut result of Saturday’s General Election. The National Party has been returned with a mandate to govern at least as strong as before. There is thus little cause for us to alter our views on the NZ economy and financial markets. The markets would appear to have liked Saturday’s election result, albeit with NZD up not even half a cent while wholesale interest rates were largely unchanged at today’s open."
"Nevertheless, there is good reason to keep abreast of New Zealand’s policy agenda and, particularly, the pace of it from here. The new government will want to make the most of its slightly improved numbers in the house, in order to press on with its ongoing and newly-promised policies. This will include getting through its reform of the Resource Management Act (RMA) and the Employment Relations Amendment Bill. Other notables are the HomeStart programme (essentially added subsidies for new builds), ongoing welfare reform and a more performance-oriented education sector. Tax cuts can wait, but are sitting out there on the not too distant horizon."
Key Quotes
"Today’s Markets Outlook can be shorter than it might have otherwise been, given the clear-cut result of Saturday’s General Election. The National Party has been returned with a mandate to govern at least as strong as before. There is thus little cause for us to alter our views on the NZ economy and financial markets. The markets would appear to have liked Saturday’s election result, albeit with NZD up not even half a cent while wholesale interest rates were largely unchanged at today’s open."
"Nevertheless, there is good reason to keep abreast of New Zealand’s policy agenda and, particularly, the pace of it from here. The new government will want to make the most of its slightly improved numbers in the house, in order to press on with its ongoing and newly-promised policies. This will include getting through its reform of the Resource Management Act (RMA) and the Employment Relations Amendment Bill. Other notables are the HomeStart programme (essentially added subsidies for new builds), ongoing welfare reform and a more performance-oriented education sector. Tax cuts can wait, but are sitting out there on the not too distant horizon."