Earlier today we had data on New Zealand's inflation expectations in Q1 2024, which fell to more than two-year lows:
This has sapped some of the confidence on further Reserve Bank of New Zealand rate hikes to come.
Comment from Westpoac in New Zealand (this via Reuters):
- "We don't think the RBNZ will panic just yet"
- still see the cash rate peaking at 5.5% for this year
- "But forget about easings in 2024 - it just isn't happening based on what we see now. And we might be back to tightening should conditions prove necessary."
NZD/USD update: