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New Zealand Q2 average 1-yr inflation expectations ease to 4.28% - central bank survey

Published 05/11/2023, 11:13 PM
Updated 05/11/2023, 11:15 PM
© Reuters. FILE PHOTO: A security guard stands outside the main entrance to the Reserve Bank of New Zealand located in central Wellington, New Zealand, July 3, 2017.   REUTERS/David Gray

WELLINGTON (Reuters) - New Zealand's near-term rate of inflation is expected to continue to ease over the coming two years, a survey showed on Monday.

© Reuters. FILE PHOTO: A security guard stands outside the main entrance to the Reserve Bank of New Zealand located in central Wellington, New Zealand, July 3, 2017.   REUTERS/David Gray

The Reserve Bank of New Zealand's (RBNZ) quarterly survey of expectations showed business managers forecast annual inflation to average 4.28% over the coming year, easing from 5.11% in the previous survey in the first quarter.

Two-year inflation expectations - seen as the time frame when RBNZ policy action will filter through to prices - is seen falling to 2.79% from 3.30%. This is within the central bank's target range of 1% to 3%.

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