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According to the latest Reserve Bank of New Zealand (RBNZ) survey, New Zealand’s (NZ) both one and two-year inflation expectations picked-up in the third quarter of 2020.

Business managers forecast annual inflation averaging 1.03% over the coming year vs. 0.74% seen in the previous May survey.

Two-year inflation expectations, seen as the time frame when RBNZ policy action will filter through to prices, accelerated to 1.43% from 1.24% last.

Kiwi uninspired

The NZD bulls remain unimpressed by the uptick in the NZ inflation expectations for Q3.

At the time of writing, the kiwi trades at 0.6638, down 0.10% on a daily basis.