New Zealand Infl Expectations Converge Near RBNZ Target Mid-Pt

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

inflation expectations survey Monday. The survey of the New Zealand public 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:

                                  Q4     Q3

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

Inflation 2-year ahead (mean)  2.02%  2.09%

Inflation 1-year ahead (mean)  1.87%  1.77%

     FACTORS: Inflation expectations converged towards the 2% mid-point of the

RBNZ's 1%-to-3% target band, with the one-year-ahead expectation rising in Q4

but the two-year-ahead falling. 

     TAKEAWAY: The rise in one-year-ahead inflation expectations one-year ahead

reflects the acceleration in the consumer price index in the Q3, which was above

both economists' and the RBNZ's forecasts. 

     Still, both Q4 expectations remain lower than those in the Q2 survey, which

showed one-year-ahead inflation at 1.92% and two-year at 2.17%.

     The RBNZ watches this survey closely and uses the data for the inflation

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

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

Thursday.

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

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