New Zealand’s (NZ) inflation expectations accelerated further across the time horizon in the first quarter of 2021, the latest monetary conditions survey conducted by the Reserve Bank of New Zealand (RBNZ) showed on Tuesday.
Two-year inflation expectations, seen as the time frame when RBNZ policy action will filter through to prices, rose to 1.89% from 1.59% last.
NZ Q1 average 1-yr inflation expectations rose to 1.73% vs. 1.23% seen in the last quarter.
Kiwi advances towards 0.7250
Rising NZ inflation expectations for Q1 boosted the NZD bulls, driving NZD/USD to fresh session highs of 0.7244, up 0.37% on the day.