By James Glynn
SYDNEY–New Zealand’s one-year inflation expectations continued to fall in the third quarter, taking some of the pressure off the central bank to raise the official cash rate further in the coming months.
The Reserve Bank of New Zealand’s latest survey of expectations showed business managers forecast annual inflation to average 4.17% over the coming year, easing from 4.28% in the previous quarter.
However, two-year inflation expectations nudged higher to 2.83% in the third quarter from 2.79% in the second quarter.
Still, the two-year results are within the central bank’s target range of 1% to 3% indicating that even if the RBNZ raises the OCR further, it is unlikely to tighten much further.
Write to James Glynn at [email protected]; @JamesGlynnWSJ
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