16 Feb 2016
RBNZ's survey of inflation expectations lowest since 1994
The RBNZ's Survey of Expectations recorded a sharp drop in expected inflation in two years' time, from 1.85% to 1.63%, notes Westpac.
Key Quotes
"This is the lowest level of inflation expectations since 1994, when the inflation target range was 0% to 2%. This is certainly the lowest ever level of inflation expectations relative to the inflation target."
"This drop in the RBNZ survey of inflation expectations follows similar falls in market-based measures of inflation expectations, and a smaller drop in the AON survey of inflation expectations in four years' time (which fell from 2.1% to 2.0%)."
"We have been expecting inflation expectations to fall for some time, but the size of today's drop took us by surprise."
Key Quotes
"This is the lowest level of inflation expectations since 1994, when the inflation target range was 0% to 2%. This is certainly the lowest ever level of inflation expectations relative to the inflation target."
"This drop in the RBNZ survey of inflation expectations follows similar falls in market-based measures of inflation expectations, and a smaller drop in the AON survey of inflation expectations in four years' time (which fell from 2.1% to 2.0%)."
"We have been expecting inflation expectations to fall for some time, but the size of today's drop took us by surprise."