Research Team at HSBC, notes that the New Zealand Q1 CPI was in line with expectations, at 0.4% y-o-y (as expected by HSBC, the market and the RBNZ). Key Quotes “Most measures of underlying inflation picked up a little in annual terms, suggesting inflation may have bottomed out. But domestic inflation pressures remain very weak beyond housing. With inflation still well below the bottom of the 1-3% target band (let alone the 'near 2%' medium-term target mid-point), we expect the RBNZ to cut its cash rate by a further 25bps in Q2. On balance, we see this as most likely to come in June, after the next reading of inflation expectations, but next week’s meeting is certainly ‘live’.” For more information, read our latest forex news.