As shown in the chart below, the annual rate has risen slightly but is still a long was from the Reserve Bank of New Zealand’s 2% target.
The RBNZ’s forecast had been for a quarterly number of 0.6%, while the market expectation was 0.4% to 0.5%.
Traders won’t have long to hear what the RBNZ thinks of the inflation outlook. On Thursday the Bank will issue a special “Economic update”. While no change to the 2.25% policy rate will be announced (that will come in the regular Monetary Policy Statement on Aug 11), the Bank is clearly unhappy with the persistent strength of NZDUSD and they will try to jawbone it down on Thursday. The cross has weakened in the last couple of days in anticipation. However, things aren’t as clear cut as they seem. See here https://www.tradingfloor.com/posts/fx-market-intervention-might-be-the-only-way-out-for-rbnz-7905292