16 Jul 2013
New Zealand CPI inflation kept in check
FXstreet.com (Barcelona) - The New Zealand Consumer Price Index (QoQ) for the second quarter came at 0.2% vs 0.3% consensus and 0.4% last in Q1. On a yearly basis, inflation stood at 0.7% vs 0.8% consensus and 0.9% previous.
As JP Morgan reported earlier, the New Zealand Q2 CPI is a very important piece of information "since price pressures are the only missing piece for an otherwise solid case for RBNZ tightening."
In an report published on Monday, Stephen Toplis, Head of Research at Bank of New Zealand, highlighted that regardless of the inflation reading in New Zealand today, "it would likely mark the proximate low in its annual rate of inflation", adding that chances are high for core inflation pressures beginning to build starting in the third quarter Q3, probably leading to "the Reserve Bank in New Zealand to start normalizing its interest rate settings sooner rather than later."
As JP Morgan reported earlier, the New Zealand Q2 CPI is a very important piece of information "since price pressures are the only missing piece for an otherwise solid case for RBNZ tightening."
In an report published on Monday, Stephen Toplis, Head of Research at Bank of New Zealand, highlighted that regardless of the inflation reading in New Zealand today, "it would likely mark the proximate low in its annual rate of inflation", adding that chances are high for core inflation pressures beginning to build starting in the third quarter Q3, probably leading to "the Reserve Bank in New Zealand to start normalizing its interest rate settings sooner rather than later."