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Banks now believe NZ inflation will come in under 2pc
Inflation could fall as low as 1.1 per cent next year, BNZ believes. Banks are dialling back their forecasts for inflation which they now believe has fallen below 2 per cent. Statistics NZ will report the inflation figure for the year to June 30 on Tuesday. The Reserve Bank forecast in May that the rate would come in at 2.1 per cent, but that was before the latest drop in the oil price. BNZ and Westpac both now expect Statistics NZ will report annual inflation dropped to 1.8 per cent, down from 2.2 per cent three months ago when Australia's inflation was a comparable 2.1 per cent.ASB Bank forecasts the latest rate ... (full story)