Two-year inflation expectations in New Zealand fell to 2.34% in Q3 2026, down from 2.53% in the prior quarter.
The New Zealand Dollar extended its decline for a fourth straight session, trading at 0.5840 against the USD in Asian hours. The drop followed data showing RBNZ two-year inflation expectations eased to 2.34% in Q3 2026, down from 2.53% in Q2.
One-year inflation projections held at 2.6%. The two-year measure is closely watched as an indicator of how monetary policy impacts consumer prices over time. Markets are still pricing in a potential 25-basis-point rate hike by the RBNZ next month.
The USD regained ground amid rising geopolitical tensions between the US and Iran, pressuring the NZD/USD pair further. Diplomatic talks remain stalled, with no progress on reviving an interim deal or setting an implementation timeline.