New Zealand’s inflation expectations for the first quarter of 2025 revealed a mixed outlook, according to the Reserve Bank of New Zealand’s (RBNZ) latest monetary conditions survey, released on Thursday.
For the two-year inflation expectations, which reflect the anticipated impact of RBNZ policy actions on prices, the figure fell to 2.06% in Q1 2025, down from 2.12% in the previous quarter, signaling a slight easing in inflation outlook over the medium term.
Conversely, one-year inflation expectations saw an uptick, rising to 2.15% in Q1 2025, compared to 2.05% in Q4 2024, indicating that inflation pressures are expected to remain somewhat elevated in the short term.
In market response, the New Zealand dollar (NZD) is trading lower, losing 0.07% to 0.5641 against the U.S. dollar as of the latest update.
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