March rate cut now more likely
Bank economists say pressure is growing on the Reserve Bank to cut interest rates in March after the central bank's Survey of Expectations showed a sharp drop in anticipated inflation.
Expectations for the inflation rate in two years time fell from 1.83 per cent to 1.63 per cent, the lowest since 1994.
The expectation for inflation in one year fell to 1.09 per cent from 1.5 per cent.
The Survey of Expectations is conducted quarterly by Nielsen for the RBNZ.
Economists at Westpac and ASB have both interpreted the result as a sign the bank have to move sooner on rate cuts.
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