New Zealand PM Peters: might loosen budget rules before next election

Joshua Gibson FXStreet

New Zealand's acting Prime Minister, Winston Peters, hit wires on Monday, suggesting that while the time may currently not be right, budgetary guidelines could be loosened in the future.

PM Peters noted that it is still premature to make any adjustments to the Budget Responsibility Rules as they currently are, but he didn't rule out a possible loosening of fiscal rules before the next election.

The Budget Responsibility Rules were enacted by the coalition government of New Zealand, and includes rules like reducing Core Crown debt to just 20% of national GDP by 2022 and restricting Core Crown spending to 30% of GDP, but the policies do allow the New Zealand government to review the current ruleset at any time during its first term in office.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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