Signs of inflation are emerging but coronavirus to keep RBNZ cautious

Fri, 07 Feb 2020

The Reserve Bank’s latest survey of expectations adds to the picture of rising inflationary pressures, but caution is still expected to prevail at next week’s monetary policy review as the coronavirus continues to unfold. The most-watched numbers in the survey, mean two-year ahead inflation expectations, lifted to 1.93 percent in the March quarter versus 1.80 percent in the December quarter. Mean expectations for one-year ahead inflation rose to 1.88 percent in the March quarter from 1.66 percent in the December quarter. The RBNZ, whic...

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