HiFX Data Update - RBNZ Inflation Expectations - NZD higher

The RBNZ just released the results of their Q1 Inflation Expectations Survey.

The inflation expectations were higher when compared with Q4 2016 figures.

1 year inflation expectations +1.56% (compared with Q4 +1.29%)

2 year inflation expectations +1.92% (compared with Q4 +1.68%)

The NZD jumped higher in immediate response.

The RBNZ pays close attention to these figures as expectations of future inflation plays a pivotal role in the formation of monetary policy, as expected inflation can turn into actual inflation.

Current indicative levels are:

NZD-USD 0.7350 / 0.7375
NZD-AUD 0.9610 / 0.9635
NZD-EUR 0.6845 / 0.6870
NZD-GBP 0.5880 / 0.5905
NZD-JPY 82.20 / 82.45

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