Official data for Q4 CPI from New Zealand shows inflation firmly in the Reserve Bank of New Zealand’s 1 to 3% band.
- The RBNZ has a focus on keeping inflation around the 2% midpoint over the medium term.
- This target is set in the Remit for Monetary Policy, agreed upon between the RBNZ and the New Zealand government, and guides the central bank’s interest rate decisions to maintain price stability while supporting sustainable economic growth.
The data released today:
- New Zealand Q4 2024 CPI slightly higher than expected
- RBNZ’s own preferred inflation model 3.1% y/y for Q4 2024 (prior 3.4%)
While that second measure is slightly above, its moving in the desired direction.
The RBNZ next meet on February 19. Market pricing is around
- 33% for 25bp rate cut
- and 67% for a 50bp cut
This article was written by Eamonn Sheridan at www.forexlive.com. Source