We still think that the flatlining of the economy over the past two years will dampen price pressures by enough to result in CPI inflation falling below the 2% target in April and below 1.0% later...

Much to the RBNZ's chagrin, inflation in New Zealand continued to have a four handle last quarter. The main culprit was non-tradables inflation, which remained uncomfortably high, at 5.8%. With the...