Statistics NZ has corrected Q3 inflation data on their website. It states that:
• Q3 CPI rose 0.3% Q/Q versus originally reports 0.2%.
• Q3 CPI rose 0.4% Y/Y versus originally reports 0.2%.
• The changes were required to correct a manual processing error discovered
• The error affected prices for vehicle relicensing fees which flow on to the non-tradables index
• The RBNZ has been notified of the error.
Despite the higher inflation reading, the RBNZ is still expected to lower the Official Cash Rate by 0.25% to 1.75% on Thursday. However, the markets are now picking that this may be the last rate cut in this cycle.
The NZD is moved higher in immediate response, however this move was short-lived.
Current indicative levels are:
NZDUSD 0.7320 /
NZDAUD 0.9535 / 0.9560
NZDEUR 0.6590 / 0.6625
NZDGBP 0.5865 / 0.5890
NZDJPY 75.95 / 76.20