RBNZ unlikely to hike its cash rate this year, and 'forget about easings' too

Earlier today we had data on New Zealand's inflation expectations in Q1 2024, which fell to more than two-year lows:

• New Zealand inflation expectations Q1 2024: 2 year at 2.5% (2.76% prior)

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: