New Zealand inflation expectations fall in Q3: RBNZ survey

[WELLINGTON] New Zealand's near-term inflation expectations fell in the third quarter, a survey showed on Monday, underscoring why the nation's central bank remains committed to keeping policy stimulatory for sometime to come.

The Reserve Bank of New Zealand's (RBNZ) quarterly survey of expectations showed business managers forecast annual inflation to average 1.77 per cent over the coming year, from 1.92 per cent in the previous survey in May.

Two-year inflation expectations - seen as the time frame when RBNZ policy action will filter through to prices - edged down to 2.09 per cent from 2.17 per cent.

The RBNZ is widely forecast to keep rates on hold at record lows at 1.75 per cent when it meets next week in order to boost consumer price inflation, which slowed more than expected in the second quarter.

REUTERS