RBNZ 1Q Survey: 24-Month Inflation Expectations 2.33%

By Dow Jones Business News, 
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By Rebecca Howard

WELLINGTON, New Zealand--First-quarter inflation expectations remain stable, according to a Reserve Bank of New Zealand survey.

Expectations for consumer prices for the next one year rose to 2.03% from 1.94% in the fourth quarter, according to the survey conducted for the central bank by The Nielsen Co.

Expectations for inflation in the next 24 months fell to 2.33% from 2.34%.

In January the bank left interest rates at a record low 2.5% but signaled increases are imminent because of inflationary pressures.

"Inflationary pressures are expected to increase over the next two years" and the central bank will increase interest rates to keep future average inflation near the 2% target mid-point, Reserve Bank Governor Graeme Wheeler said.

Economists expect the central bank to raise interest rates in March.

Write to Rebecca Howard at rebecca.howard@wsj.com


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