ANZ’s latest measure of consumer confidence shows inflation expectations at highest level since July, 2023.
Stats NZ data shows annual inflation rose to 2.5%, above 2.2% at the end of last year.
The central bank’s chief economist aims to improve understanding of forecasts in a volatile and uncertain world.
Monetary policy is easier to reverse than fiscal policy, Treasury’s chief economic adviser Dominick Stephens says.
WATCH: US President Donald Trump keeps RBNZ and economists alert over where NZ economy is heading.
The central bank was widely expected to cut the official cash rate this week, with inflation in the band, and economy still in recovery.
NZIER’s latest survey puts momentum behind economic growth and further rate cuts.
‘Soft’ data on sentiment is positive and this should flow through to hard data, the ratings agency says.
Consumer confidence dropped this month as inflation expectations nudge above 4%.
The latest survey indicates unemployment is nearing the peak, Westpac says.