The Reserve Bank on NZ inflation expectations drools lower 

 

 

An inflation expectations have risen the interest rate after a record low. While the reserve bank has shown the expectations for inflation has been plunging after a 22-year low record system. The survey shows that it has been lower than the 2 % target. In this quarter, the CPI (consumer price Index) has ruled out at 0.2% & there is a mild decrease in inflation at 1.5% target. The lower level of inflation has been some of the expectations that have fallen beyond the expectation.

According to Seven Star FX Research Center, there is a lower level of inflation rate that has been relative to the inflation target. While we are expecting that the inflation of the New Zealand economy will be dropped for a certain period of time and it should not come as a surprise.  We, however witnessed that there is a high amount of uncertainty in the FOREX market today

Majority all the biggest economists predicts that there is a high amount of Reserve Bank reserves, then there would be a major drop in official cash rates which can lead to further rates drop. However, we expect that the first OCR cut will be in this March or June of this year.