New Zealand government formed and will target the RBNZ mandate

Lallalit Srijandorn FXStreet

After more than a month of negotiations over ministerial roles and policies, New Zealand's National Party has achieved an agreement with ACT New Zealand and New Zealand First to form the country's next three-party coalition government, per Reuters.

The coalition announced a series of policy reforms, including the role of the Reserve Bank of New Zealand (RBNZ). The government will amend the Reserve Bank of New Zealand Act 2021 to remove the dual mandate on inflation and employment and concentrate only on price stability.

Market reaction

At the press time, the NZD/USD pair is up 0.05% on the day to trade at 0.6051.

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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