New Zealand inflation expectations edge up to 1.86% in coming year: RBNZ survey

[WELLINGTON] New Zealand's near-term inflation expectations increased in the third quarter, but remained below the central bank's target midpoint for the next year, a survey showed on Wednesday.

The Reserve Bank of New Zealand's quarterly survey of expectations showed business managers forecast annual inflation to average 1.86 per cent over the coming year, from 1.8 per cent in the previous survey.

Two-year inflation expectations edged up to 2.04 from 2.01 per cent.

The RBNZ is set to announce its next monetary policy decision on Thursday and is widely expected to keep rates on hold.

REUTERS