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New Zealand Posts First Dip in Inflation Expectations in 2 Years

  • Currency slides as investors bet on slower pace of rate hikes
  • Central bank is still expected to hike by half-point next week

New Zealand recorded its first drop in two-year inflation expectations since mid-2020, adding to signs the Reserve Bank’s aggressive policy tightening is beginning to cool the economy. 

Expectations fell to 3.07% in the third quarter from 3.29% in the prior three months, the RBNZ said in a quarterly Survey of Business Expectations released Monday in Wellington. The second-quarter reading was the highest since early 1991 and had been the eighth straight gain.