New Zealand's (NZ) inflation expectations are seen gaining upside momentum across the time curve in the first quarter of 2022, the latest monetary conditions survey conducted by the Reserve Bank of New Zealand (RBNZ) showed on Friday.
Two-year inflation expectations, seen as the time frame when RBNZ policy action will filter through to prices, rose to 3.27% from 2.96% last.
NZ Q1 average 1-yr inflation expectations jumped to 4.40% vs. 3.70% seen in the fourth quarter. The gauge hit the highest level in 31 years.
Kiwi little changed
The ongoing acceleration in the NZ inflation expectations failed to cheer kiwi bulls, keeping NZD/USD under pressure near 0.6660.
At the time of writing, the kiwi is trading at 0.6656, down 0.19% on the day.
