NZD: CPI expectations and RBNZ outlook – TD Securities
TD Securities' Global Strategy Team analyzes the NZD in light of upcoming CPI data. The report anticipates that Q4 CPI will exceed the RBNZ's forecast, with headline CPI expected at 0.5% q/q. This outlook suggests that further rate cuts from the RBNZ are unlikely, indicating a stable monetary policy environment for the NZD.
CPI data impacts NZD outlook
"Stats NZ's monthly price trackers hint that Q4 CPI likely exceeded the RBNZ's 0.2% q/q forecast in their Nov MPS. We expect headline CPI at 0.5% q/q (cons: 0.5%) which brings annual inflation to 3.0%, unchanged from Q3."
"With NZ's Q4 QBSO also showing a strong rebound, we believe further rate cuts from RBNZ are unlikely."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
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FXStreet Insights Team
FXStreet
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