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New Zealand inflation expectations ease over two-year horizon
New Zealand firms once again dialled back their two-year inflation expectations and also lowered their growth forecasts, which will likely add to the view the central bank will reiterate that rates will remain on hold until 2019 at Thursday's review. The Reserve Bank's survey of expectations showed respondents see annual inflation at 1.87 per cent in one year versus 1.77 per cent rate in the prior survey three months ago. In two years it is seen at 2.02 per cent, down from 2.09 per cent. The central bank is mandated to keep annual consumer price inflation between 1 per cent and 3 per cent, with a focus on the ... (full story)