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24 Feb 2015
RBNZ: Inflation expectations provide scope for further easing
FXStreet (Bali) - NZD has fallen quite sharly - over 30/35 pips - as the RBNZ surbey of inflation rate expectations came at 1.8% in Q1 vs 2.06% last.
The market is interpreting the data as further RBNZ scope to ease should it be necessary, despite early in the month, a Governor Wheeler speech dismissed the possibilities of lower rates near term. One piece of data feeding on the bear momentum was the one-year series, which decreased from 1.59 to 1.11% on a mean basis, with the median falling to 1.0%.
The market is interpreting the data as further RBNZ scope to ease should it be necessary, despite early in the month, a Governor Wheeler speech dismissed the possibilities of lower rates near term. One piece of data feeding on the bear momentum was the one-year series, which decreased from 1.59 to 1.11% on a mean basis, with the median falling to 1.0%.