New Zealand's inflation expectations fell to 2.33% in Q2, supporting rate cut expectations.

New Zealand's inflation expectations fell to their lowest in almost three years, supporting investor bets for rate cuts. The kiwi dollar dipped. Two-year ahead expectations declined to 2.33% in Q2 from 2.5% in Q1. The RBNZ aims for an inflation rate of 2% within a 1-3% target band, planning to start reducing its Official Cash Rate from 5.5% next year amid persistent domestic price pressures.

May 13, 2024
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