RBNZ's survey of inflation expectations lowest since 1994

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 16, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    The RBNZ's Survey of Expectations recorded a sharp drop in expected inflation in two years' time, from 1.85% to 1.63%, notes Westpac.

    Key Quotes

    "This is the lowest level of inflation expectations since 1994, when the inflation target range was 0% to 2%. This is certainly the lowest ever level of inflation expectations relative to the inflation target."

    "This drop in the RBNZ survey of inflation expectations follows similar falls in market-based measures of inflation expectations, and a smaller drop in the AON survey of inflation expectations in four years' time (which fell from 2.1% to 2.0%)."

    "We have been expecting inflation expectations to fall for some time, but the size of today's drop took us by surprise."
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