New Zealand inflation expectations remained subdued in Q1 2025

New Zealand's inflation expectations remained subdued in the first quarter, according to a Reserve Bank of New Zealand (RBNZ) survey released Thursday:

• Reserve Bank of New Zealand inflation expectations: 1yr 2.15% (prior 2.05) 2yr 2.06 (2.12)

The survey showed that two-year inflation expectations, a key measure for assessing the impact of monetary policy, edged down to 2.06% from 2.12% in the previous quarter.

• one-year inflation expectations rose slightly to 2.15% from 2.05%

The bigger picture shows the sharp fall:

Most analysts anticipate the RBNZ bank will cut the official cash rate by 50 basis points to 3.75% at its upcoming meeting on February 19.

ANZ:

• Reserve Bank of New Zealand preview - likely the final 50bp interest rate cut