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New Zealand Inflation Hits 2.2%; Rate Cut Expected Soon

1/22/2025

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Summary

Story summary

New Zealand's Q4 CPI reports inflation at 2.2%, slightly exceeding expectations but within the RBNZ's target range.
The RBNZ is expected to cut rates on February 19, with a 90% chance of a 50bp reduction.
Domestic inflation pressures are easing, alongside a decline in tradable inflation.
Core inflation remains elevated at 3%, signaling ongoing price pressures.
The RBNZ will release a sectoral factor model today for deeper inflation insights.

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Story summary

New Zealand's Q4 CPI reports inflation at 2.2%, slightly exceeding expectations but within the RBNZ's target range.
The RBNZ is expected to cut rates on February 19, with a 90% chance of a 50bp reduction.
Domestic inflation pressures are easing, alongside a decline in tradable inflation.
Core inflation remains elevated at 3%, signaling ongoing price pressures.
The RBNZ will release a sectoral factor model today for deeper inflation insights.