NZ: some political/policy certainty is needed now - ANZ

In respect of New Zealand's elections, analysts at ANZ noted that the National lost two seats and Labour/Greens picked up one each in the counting of special votes. 

Key Quotes:

"That leaves the final tally of National with 56 seats and the centre-left with 54. NZ First (9) and Act (1) were both unchanged. While NZ First is still in the “king/queen maker” position, the final count strengthens the negotiating position of the centre-left by increasing its margin from a slim 1 (61) to 3 (63).

While Winston Peters has given a self-imposed deadline of making a decision on who he will support by the 12th October, the complexities of two concurrent negotiations seems like this could be pushed out. With the economy at a cross-roads as housing, construction, tourism, and migration all come off their peaks, gaining some political/policy certainty is going to be key to avoid a more abrupt loss of confidence and sharper slowdown.

The nature of the large fiscal boost that is in the wings is going to be critical to fill any potholes, but an economy’s ability to navigate political uncertainty shouldn’t be underestimated. The case in point at present is the US and UK economies."