From Westpac economists in their Economic Overview (published once a quarter) for New Zealand
- Say the CPI will be down 0.1% in both Q2 and Q3
- Inflation to bounce into the Reserve Bank of New Zealand's 1 -3% target band in 2017
They also suggest that low inflation expectations are a 'major worry' for the RBNZ
Last week we saw NZ rate cut expectations trimmed after Governor Wheeler spoke, saying he wanted some more time to assess the data.
While I'm on NZ and WPAC
- WPAC have lowered their 2015/16 dairy payout Fonterra forecast to NZ$4 kg (from $4.15 previously forecast)
- And for 2016/17 to $4.60 (from $5.20)