New Zealand Election resulted to a hung Parliament over the weekend with PM English's National Party winning most seats; Focus turns to the 'kingmaker'

New Zealand held its general election on Saturday which resulted to a hung parliament, as no party gained the 61 seats needed for a majority. In terms of the results, the incumbent National Party won 58 seats, main opposition Labour Party won 45 seats, New Zealand First won 9 seats, Green Party won 7 seats, ACT won 1 seat and the Maori Party won 0 seats.

The results of the election suggests the National Party which received 46.0% of votes and 58 seats is in a strong position to remain in government as they only need 3 seats, whereas Labour with 35.8% of votes and 45 seats would need the backing from its known ally Green Party and New Zealand First to take control. This makes New Zealand First and its leader Winston Peters the kingmaker again, after having in the past agreed to work with both sides in which Peters held the position of Deputy PM under a coalition with the National Party in 1996 and also as Foreign Minister from 2005 after his party entered a confidence and supply deal with the Labour Party. 

In addition, some analysts see a deal with the Labour Party less likely considering it would mean that New Zealand First would have to go against the popular vote, which the National Party clearly won by over 10pts vs. Labour. Nonetheless, focus is now on Peters who is in no hurry to make a decision as he ruled out giving any answers during the weekend until he speaks to his party, while a decision could even take as long as 3 weeks as Peters previously mentioned 2 months prior to the election that they set an October 12th deadline for an announcement.

24 Sep 2017 - 06:00- ForexImportant- Source: RANsquawk

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