Statistics NZ has corrected Q3 inflation data on website

Statistics NZ has corrected Q3 inflation data on their website. It states that:

• Q3 CPI rose 0.3% Q/Q versus originally reports 0.2%.

• Q3 CPI rose 0.4% Y/Y versus originally reports 0.2%.

• The changes were required to correct a manual processing error discovered

• The error affected prices for vehicle relicensing fees which flow on to the non-tradables index

• The RBNZ has been notified of the error.

Despite the higher inflation reading, the RBNZ is still expected to lower the Official Cash Rate by 0.25% to 1.75% on Thursday. However, the markets are now picking that this may be the last rate cut in this cycle.

The NZD is moved higher in immediate response, however this move was short-lived.

Current indicative levels are:

NZDUSD 0.7320 / 0.7345
NZDAUD 0.9535 / 0.9560
NZDEUR 0.6590 / 0.6625
NZDGBP 0.5865 / 0.5890
NZDJPY 75.95 / 76.20

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