Tony Alexander

Economic Commentaries

Weekly Overview 19 October 2017

Thursday October 19th 2017

NZ is to have a Labour-NZ First coalition government with support on confidence and supply from the Greens. General policy orientation will shift slightly toward a bit more state intervention and environmental concerns with some changes to RBNZ operations unlikely to actually alter implementation of either monetary or prudential policies. We will have to wait a few days until a document is released outlining policies agreed on then watch the next three years as support from the Greens is sought for every piece of legislation the new government wishes to pass.

We can expect bans on foreign buying of NZ properties and immigration rule changes aimed at cutting gross inflows by some 30,000 per annum – largely of low level students and unskilled people no longer able to get work visas.