Earlier today we had data on New Zealand’s inflation expectations in Q1 2024, which fell to
more than two-year lows:
This has sapped some of the confidence on further Reserve Bank of New Zealand rate hikes to come.
Comment from Westpoac in New Zealand (this via Reuters):
- “We don’t
think the RBNZ will panic just yet” - still see the cash
rate peaking at 5.5% for this year - “But forget
about easings in 2024 – it just isn’t happening based on what we see
now. And we might be back to tightening should conditions
prove necessary.”
NZD/USD update:
This article was written by Eamonn Sheridan at www.forexlive.com. Source