NZD drips lower still on RBNZ inflation expectations survey drop from prior
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New Zealand 1-year Inflation Expectations for Q3 2026 2.6% sharply down from Q2 3.4% 2-year Inflation Expectations 2.3% Q2 2.5% At the margin this trims expectations of a September 2 RBNZ rate hike. Background here: Preview - RBNZ tightening path in focus as economists disagree o
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4 itemsReserve Bank of New Zealand survey shows rising inflation expectations
The Reserve Bank of New Zealand's latest survey indicates a notable rise in inflation expectations, with 2-year expectations climbing to 2.5% from 2.4% and 1-year expectations surging to 3.4% from 2.6%. Per the full note [source], this shift suggests that market participants are increasingly anticipating sustained inflationary pressures, which could influence the RBNZ's monetary policy trajectory. The desk views this as a potential catalyst for the NZD, particularly if the central bank reacts to these expectations with a more hawkish stance. With the current consensus target for NZD/USD at 1.075, this data could prompt a reassessment of positioning ahead of upcoming economic indicators.