RBNZ survey shows higher inflation, greater unemployment and weaker growth expected
The Reserve Bank of New Zealand's expectations survey showed higher forecasts for both inflation and unemployment, while growth expectations weakened. The results pull the monetary policy outlook toward tighter conditions over the coming quarters. Caution in agriculture and property weighed on headline readings.
The Reserve Bank of New Zealand's survey of professional forecasters signalled a clear move up in three-month inflation expectations. Two-year expectations also moved closer to the top of the central bank's target band.
The same survey showed forecasts for the unemployment rate revised higher and forecasts for GDP growth revised lower. Uncertainty in the farming sector, the property-price correction and the energy-cost impact of the Iran war were the most-cited risks.
The data will be an important reference for the central bank's communication ahead of its July meeting. The New Zealand dollar saw only a limited move against its US counterpart, and bond yields eased modestly along the short end of the curve.
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