New Zealand 2-Yr Infl Views Down but Above RBNZ Band Midpoint

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     SYDNEY (MNI) - The Reserve Bank of New Zealand published its quarterly

inflation expectations survey Monday. The survey is conducted for the RBNZ by

The Nielsen Company every quarter and is based on expectations of respondents

and isn't a representation of RBNZ forecasts or views:

                                  Q3     Q2

-------------------------------------------

Inflation 2-year ahead (mean)  2.09%  2.17%

Inflation 1-year ahead (mean)  1.77%  1.92%

     FACTORS: Inflation expectations slowed in the third quarter but the

two-year view remained above the midpoint of the Reserve Bank of New Zealand's

1%-to-3% target band for the second time since the fourth quarter of 2014. 

     TAKEAWAY: The fall in inflation expectations follows a slowing in the

consumer price index in the second quarter which showed headline inflation was

flat q/q compared with +1.0% in the first quarter. The outcome pushed y/y CPI

back below the midpoint of the RBNZ's target band. 

     The RBNZ watches this survey closely and uses the data in its inflation

projections for its quarterly Monetary Policy Statement. This is the last

important data release prior to the RBNZ's Monetary Policy Statement on Thursday

and it supports expectations that the central bank will retain its neutral

stance -- with some bias to downside. 

--MNI Sydney Bureau; tel: +61 2-9716-5467; email: sophia.rodrigues@marketnews.com

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