WELLINGTON, Aug 6 (Reuters) – New Zealand’s near-term inflation expectations dropped in the third quarter, sending the currency lower, a survey showed on Tuesday.
The Reserve Bank of New Zealand’s (RBNZ) quarterly survey of expectations showed business managers forecast annual inflation averaging 1.71% over the coming year, from 1.97% in the previous survey.
Two-year inflation expectations – seen as the time frame when RBNZ policy action will filter through to prices – fell to 1.86% from 2.01%.
The New Zealand dollar fell from $0.6557 to $0.6538 immediately after the release.
The RBNZ is widely expected to cut rates when it releases its monetary policy decision on Wednesday. (Reporting by Charlotte Greenfield Editing by Jacqueline Wong)