WELLINGTON: New Zealand's near-term inflation expectations edged marginally higher in the second quarter, with the rate seen around the midpoint of the central bank's target band, a survey showed on Thursday.
The quarterly survey of expectations done on behalf of the Reserve Bank of New Zealand (RBNZ) showed business managers forecast annual inflation to average 2.08 percent over the coming year from 2.03 percent in the previous survey in February.
Two-year inflation expectations seen as the time frame when RBNZ policy action will filter through to prices were 2.36 percent from 2.33 percent.
The central bank has raised its cash rate by 25 basis points in the last two reviews, after being on hold for three years. It is expected to raise by a similar amount in June to 3.25 percent, according to the latest Reuters poll.
The RBNZ said the survey showed respondents believe current monetary conditions are easy but also expect that policy will tighten.
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