The latest monetary conditions survey, conducted by the Reserve Bank of New Zealand (RBNZ), revealed on Wednesday that New Zealand's (NZ) inflation expectations rose on a two-year time frame for the third quarter of 2023 while falling further for the year ahead.

Two-year inflation expectations, seen as the time frame when RBNZ policy action will filter through to prices, rose slightly to 2.83% in Q3 from 2.79% prior.

NZ 2023 average one-year inflation expectations fell further to 4.17% in the quarter to September vs. 4.28% seen in the second quarter of this year. 

Kiwi holds higher ground on inflation expectations

The uptick in NZ inflation expectations keeps the New Zealand Dollar (NZD) afloat. At the press time, NZD/USD is holding higher ground near 0.6080, adding 0.19% on the day.