NZ shares slide as inflation expectations jump

The yield on a 2-year government bond jumped to 2.1% following the inflation survey’s release. (Photo: Dan Brunskill)

Thu, 18 Nov 2021

New Zealand’s sharemarket dipped again on Thursday as a Reserve Bank survey showed inflation expectations for the next two years had jumped to just under 3%.All eyes will now turn to the Reserve Bank of New Zealand (RBNZ) to see how aggressively they move to curtail inflation. Senior ASB economist, Mark Smith said the 3% figure essentially locks in another official cash rate hike next week and raises the possibility of a 50-basis-point hike. “The RBNZ will be concerned by these figures but will be comforted that longer-ter...

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