The New Zealand dollar fell after a quarterly survey released by the Reserve Bank of New Zealand showed a sharp drop in inflation expectations. The kiwi slid 0.5 percent to 0.5829 US dollars, its weakest level in two weeks, breaking below support at 0.5850 US dollars. According to the survey, one-year inflation expectations averaged 2.6 percent, down sharply from 3.4 percent previously, returning to levels seen before fuel prices surged due to the Middle East conflict. Two-year inflation expectations came in at 2.34 percent, slightly lower than the previous 2.35 percent. Westpac senior economist Satish Ranchhod said he expects two more 25-basis-point rate hikes this year, most likely at the September and December meetings.
RBNZ survey shows inflation expectations plunging, reducing rate hike odds and weakening NZD
