The Reserve Bank of New Zealand's inflation expectations survey is released Wedensday, 3pm NZ time (0200 GMT)

  • 2-year ahead inflation expectations were last at 2.96% in the previous survey and are expected to increase this time around

Longer-term (5 year ahead, 10 year ahead for example) will also be of, perhaps more, significance.

Further rises will cement even further expectations of aggressive RBNZ rtate hikes ahead this year. The next meeting is February 23.

Kiwi Bank comment:

  • in our view, the RBNZ is set to hike the cash rate at every meeting this year to take it to 2.50% by November.

And, on tomorrow's data:

  • On Wednesday the RBNZ is set to publish the results of its latest survey of expectations. Shorter-term expectations - 1-2 years ahead - rocketed higher at the end of 2021 and are set to rise further this week. However, shorter-term expectations reflect the current inflation situation. In contrast long-term expectations of 5-10 years are a test of the RBNZ's inflation-targeting credibility. We expect to see a slight lift in the 5-year rate, as inflation pressures persist. If the 5-year measure - currently at 2.17% - moves further above the middle of the RB's 1-3% target band, then the RBNZ has even more to worry about.