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Unlike most countries, New Zealand publishes its inflation data only once per quarter. This means there are a lot more expectations ahead of the release.
Many analysts are saying this is a key point that will set the trend for monetary policy for the next three months. And, by extension, this would affect how the NZD will trade for that period.
The current outlook suggests that the RBNZ is less likely than before to continue easing, and inflation is seen to finally have turned the corner. Until recently, optimism of Chinese growth following signing the Phase 1 trade deal with the US helped the outlook for New Zealand.
However, now with the outbreak of the coronavirus, there are increasing concerns that the Kiwis could be affected by a drop in travel, and slowing consumption in the Asian giant.
What We Are Looking For
Expectations are for the quarterly CPI change rate to slow this time around to just 0.1% co...
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