Equities fall as inflation expectations rise

The S&P/NZX 50 Index fell 126.18 points, or 1 percent, to 12,927.69.

Within the index, 27 stocks fell, 20 rose and three were unchanged. Turnover was $161.5 million. Senior Westpac economist, Satish Ranchhod, said longer term inflation expectations - which rose 30 basis points to 1.89 percent - are a key focus for the central bank’s Monetary Policy Committee.

Ranchhod said this suggested there may be more inflationary pressure than the RBNZ had “factored in” to its previous policy review last November.

“Market thoughts are starting to turn to the timing of RBNZ hikes, but we still think that is years off,” he wrote in a note.