The latest quarterly Reserve Bank Survey of Expectations has shown a sharp spike in expectations of the level of inflation in a year's time and also an upward move in the expectation for house prices. This survey, a New Zealand-wide quarterly survey of business managers and professionals, carries a lot of clout with the RBNZ. The central bank has been known to make changes to the Official Cash Rate largely based on the outcomes of this survey in the past. The latest survey shows that the mean expectation for inflation in a years' time is now 2.09%, sharply higher than the 1.86% recorded in the last quarterly survey ... (full story)