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NZD & NZ Yields Lower Post-CPI

CROSS ASSET

Much softer than expected headline CPI (+1.2% Q/Q vs. BBG median of +1.5% & +6.7% Y/Y vs. BBG median +6.9%) weigh on the NZD in immediate reaction to the release. Meanwhile, NZGB yields and NZ swap rates tick lower. RBNZ-dated OIS comes in a touch with terminal rate pricing in to 5.51% vs. 5.57% pre-data. There was an uptick in non-tradable inflation (+1.7% Q/Q vs. the +1.5% seen in Q4). The headline CPI print undershot RBNZ expectations of +7.3% Y/Y & +1.8% Q/Q, with non-tradables inflation also undershooting the Bank’s forecast +1.9% Q/Q. More to follow.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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