The latest monetary conditions survey, conducted by the Reserve Bank of New Zealand (RBNZ), revealed on Friday that New Zealand's (NZ) inflation expectations decline further across the time horizon in the second quarter of 2023.

Two-year inflation expectations, seen as the time frame when RBNZ policy action will filter through to prices, dropped sharply to 2.79% from 3.30% prior.

NZ Q1 2023 average one-year inflation expectations fell to 4.28% vs. 5.11% seen in the first quarter of this year. 

Kiwi dips on softer inflation expectations