NZ PM deferred the dissolution of the country’s Parliament until Monday – The Guardian

The Guardian reports that Jacinda Ardern, New Zealand’s prime minister, has deferred the dissolution of the country’s Parliament until Monday due to the Covid-19 outbreak, with a reassessment due then.

Parliament was due to dissolve today at 11am ahead of an election scheduled for 19 September.

When Parliament is dissolved, Cabinet retains a mandate to make decisions, but it means the full Parliament cannot be convened.

Officials are hoping a strict lockdown of the largest city, Auckland, for the next three days will isolate the source of the new outbreak.

Market implications

The re-emergence of local transmission of COVID-19 and the shift to Level 3 lockdown in the Auckland region has weighed on the Kiwi overnight.

However, there cannot be too much expe ted ahead of the Reserve bank of New Zealand today.

Last night’s news is a reminder that the Committee can ill-afford to be complacent, and need to underscore that they will do what it takes. We thus expect a very dovish tone, which poses significant downside risks for the NZD, albeit against the backdrop of USD uncertainty (is it or isn’t it rebounding?),

analysts at ANZ Bank explained.