New Zealand fourth quarter inflation data

-0.5% q/q

  • expected -0.2% and prior was +0.3%

+0.1% y/y

  • expected 0.3%, while prior was 0.4%
  • Weakest inflation since 1999

I mentioned prior to the release that the NZ fin min (Bill English) has pressured the Reserve Bank of New Zealand to lower interest rates due to persistently low inflation and the RBNZ missing its target ... well, we can expect more of that pressure.

NZD has tanked on the data, 75 odd points down

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Note: The Reserve Bank of New Zealand target band for inflation is 1 to 3%.