According to the latest Reserve Bank of New Zealand (RBNZ) survey, New Zealand’s both one and two-year inflation expectations rose in the first quarter of 2020.
Business managers forecast annual inflation averaging 1.88% over the coming year vs. 1.66% previous.
Two-year inflation expectations, seen as the time frame when RBNZ policy action will filter through to prices, rose to 1.93% from 1.80% last. This marked the first uptick in six quarters.
The Kiwi consolidates the downside near a new nine-week low of 0.6447 following the upbeat NZ data, with the prices now trading flat at 0.6453.