Inflation expectations fall sharply
The survey outcome reinforces the likelihood that the central bank will keep interest rates on hold for an extended period – most economists are forecasting until at least December.
Two-year-ahead expectations of annual inflation now stands at 2.5%, down from 2.8% in the last survey in November, while the mean of one-year-ahead expectations fell to 2.24% from 2.72%.
“The Reserve Bank will be pretty pleased to see them (expectations) drop across the board, particularly that two-year-ahead one,” says Doug Steel, an economist at Bank of New Zealand.
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
![[The Wrap] What the heck is happening at the FMA?](https://goodreturns.publit.io/file/c_fill,w_300,h_200/a6c3bc06-6401-44de-96e2-286c090e132d.jpg)
