Falling Inflation Expectations in New Zealand

New Zealand's falling inflation expectations lead to expectations of a standstill in official interest rates. The Reserve Bank of New Zealand's inflation expectations for the next year dropped to 3.22% from 3.60%, while the two-years ahead measure declined to 2.50% from 2.76%. Despite elevated headline inflation at 4.7%, the central bank is likely to remain cautious and is expected to keep the official cash rate on hold this year, with no cuts until early 2025.