The Reserve Bank on NZ inflation expectations drools lower
An inflation expectations have risen the
interest rate after a record low. While the reserve bank has shown the
expectations for inflation has been plunging after a 22-year low record
system. The survey shows that it has been lower than the 2 % target. In
this quarter, the CPI (consumer price Index) has ruled out at 0.2% &
there is a mild decrease in inflation at 1.5% target. The lower level
of inflation has been some of the expectations that have fallen beyond
the expectation.
According to Seven Star FX Research
Center, there is a lower level of inflation rate that has been relative
to the inflation target. While we are expecting that the inflation of
the New Zealand economy will be dropped for a certain period of time and
it should not come as a surprise. We, however witnessed that there is a
high amount of uncertainty in the FOREX market today
Majority all the biggest economists
predicts that there is a high amount of Reserve Bank reserves, then
there would be a major drop in official cash rates which can lead to
further rates drop. However, we expect that the first OCR cut will be in
this March or June of this year.
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