New Zealand’s (NZ) two-year inflation expectations for households are seen rising to 3.2%, as against a 3.0% growth estimated before, the latest survey conducted by the Reserve Bank of New Zealand showed on Thursday.

The RBNZ closely watches the two-year inflation expectations, as the central bank considers this time horizon as key for the transmission of changes in monetary policy.

Market reaction

The New Zealand Dollar keeps its upbeat momentum intact following the above survey findings. NZD/USD is adding 0.15% on the day to trade near 0.6190, at the press time.