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N.Z. Inflation Expectations Rise, Damping June Rate-Cut Bets

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An increase in New Zealand inflation expectations damped bets on the central bank cutting interest rates as soon as next month and drove up the nation’s dollar.

The expected rate of inflation two years ahead rose to 1.85 percent from 1.8 three months ago, according to a survey of businesses and analysts published by the Reserve Bank of New Zealand in Wellington on Tuesday. The year-ahead expectation rose to 1.32 percent from 1.11 percent, the RBNZ said.