Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

NZ dollar falls as NZ First backs Labour-led government

NZ dollar falls as NZ First backs Labour-led government

Oct. 19 (BusinessDesk) - The New Zealand dollar fell after NZ First leader Winston Peters said he would support a Labour-led government, saying the nation voted for change, and that he expected a change to the Reserve Bank Act.

The kiwi dropped as low as 70.62 US cents and was trading at 70.65 cents as at 7.15pm from 70.94 cents before he started his briefing. The local currency started declining amid reports the incumbent National Party baulked at NZ First's demands for ministerial posts.

"The majority of this country has voted for the change that is happening," Peters told a briefing in Wellington.

Peters said his party believed an economic slowdown is "already here" and those risks fed into the decision made. He didn't provide any details on ministerial posts, but did say NZ First didn't secure the finance portfolio. He did say he's been offered the deputy prime ministership.

New Zealand's financial markets have been in a state of flux since the Sept. 23 election which left NZ First holding the balance of power and once special votes were counted the gap between National and the Labour-Green bloc got even tighter.

Before today's announcement traders had said a National-led administration would probably stoke a knee-jerk jump in the currency whereas a Labour-led government would push it lower.

Peters said NZ First has a coalition agreement with Labour while the Green Party has a confidence and supply agreement and will sit outside cabinet.

On policy concessions, Peters confirmed he expected the Reserve Bank Act to change, and that he anticipated there were be "fewer people coming here". He also expected 10,000 affordable homes to be built every year to help boost ownership for first-home buyers.

Peters said the major decisions have been made, and that he expects to be able to sort out any further things that crop up as they arise.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 




Fonterra: Lifts Forecast Farmgate Milk Price Range

Fonterra Co-operative Group today lifted its 2021/22 forecast Farmgate Milk Price range to NZD $8.90 - $9.50 per kgMS, up from NZD $8.40 - $9.00 per kgMS. This increases the midpoint of the range, which farmers are paid off... More>>



Federated Farmers: NAIT Levy Increases Must Achieve Accurate, User-friendly System
Nobody welcomes extra costs but if OSPRI is to catch-up on under investment in the NAIT platform and deliver on its workability and farmer support, levy increases are probably necessary, Federated Farmers says... More>>



Westpac: More Job Opportunities, But Growth In Workers’ Earnings Remains Subdued

The Westpac McDermott Miller Employment Confidence Index rose 1.2 points in the December quarter, to a level of 106.9. This was the sixth straight rise in the index since the Covid-19 lockdown in 2020. Michael Gordon, Acting Chief Economist for Westpac, noted that the rise in the index has largely been driven by perceptions... More>>



Statistics: Household Net Worth Grows In The September 2021 Quarter But At A Slower Pace Compared To March 2021

Household net worth grew by $60.7 billion in the September 2021 quarter compared with the June 2021 quarter, Stats NZ said today. This represents an increase of 2.5 percent, a similar result to the June 2021 quarter, which was up $60.6 billion or 2.6 percent... More>>

TradeMe: Job Market Ends 2021 On A High With Record Number Of Vacancies
The New Zealand job market finished 2021 on a high note, with the ball still firmly in the job hunters’ court, according to the analysis of 69,600 vacancies listed on Trade Me Jobs for the quarter ending 31 December (Q4)... More>>


Insurance Council of New Zealand: September South Island Windstorm Cost $36.5 M Raises 2021 Extreme Weather Claims Total To $321.6 M

Gale force winds and storms between 9 and 13 September 2021 resulted in insurers supporting communities to the tune of $36.5 m. This is a significant rise, of $16.7 m, on preliminary figures for the event and lifts the end of year total for all extreme weather events in 2021 to $321.6 m... More>>