According to the latest Reserve Bank of New Zealand (RBNZ) survey, New Zealand’s both 1-year and 2-year inflation expectations dropped in the third quarter.
Business managers forecast annual inflation averaging 1.71% over the coming year vs. 1.97% previous.
Two-year inflation expectations, seen as the time frame when RBNZ policy action will filter through to prices, fell to 1.86% from 2.01% last.
The Kiwi lost ground on the poor data release and tested the strong support near 0.6540 region before rising back above the midpoint of the 0.65 handle.
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