The Kiwi strengthened against the US Dollar after the Reserve Bank of New Zealand boosted its inflation expectations. The NZD/USD currency pair climbed 0.39% or 29 base points to the 0.7304 mark to continue gradual increase.
The RBNZ quarterly expectations survey showed annual inflation is likely to reveal average 2.11% growth pace in the next two years, following 2.02% in the prior survey. The report added to expectations that the Central Bank would keep the key interest rate at the record-low of 1.75% for longer before hiking in 2019. Meanwhile, the Bank’s one-year inflation preformed a slightly softer 1.86%, compared with 1.87% in the fourth quarter.
