Responses to the NZ negative CPI print coming in - "need for further action from the RBNZ "

ANZ with analysis on the New Zealand inflation data out earlier:

• NZ CPI - inflation in New Zealand for Q2 -0.5% q/q (expected -0.6%)

Comments (in summary):

• These data captured a fair amount of lockdown-induced noise, dragging on quarterly inflation. That suggests Q3 will include a healthy dose of payback (but with underlying inflation continuing to decelerate). 
• Looking through the noise, inflation and employment headwinds reinforce the need for further action from the RBNZ

• " the underlying pulse is weak"

• "The RBNZ has a momentous battle on its hands. Without further action or a significant change in the economic outlook, the risk of a persistent undershoot is likely to materialise."