SYDNEY (Reuters) -New Zealand’s inflation expectations rose in the second quarter to its highest in a year, a Reserve Bank of New Zealand (RBNZ) survey showed on Friday, as markets expect the central bank to cut rates when it meets end of this month.
Two-year inflation expectations, seen as the timeframe when RBNZ policy action will filter through to prices, rose to 2.29% from 2.06% in the first quarter, RBNZ’s quarterly survey showed.
That is within RBNZ’s inflation target range of 1% to 3%.
The survey data from 42 business leaders and professional forecasters saw annual price increases averaging 2.41% in the year ahead, up from 2.15% previously.
(Reporting by Renju Jose in Sydney; Editing by Muralikumar Anantharaman)
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