New RBNZ survey can’t be music to its ears

Businesses across the country expecting to thrive in 2025 are still in a big hole, down in the dumps and it is showing in a big new survey by the RBNZ.

The expect inflation to still be rising in 10 years and this will not be music to the RBNZ’s monetary policy committee.

It is expected to drop the OCR to 3.25% next week but any further cuts may be influenced by the survey of 636 businesses showing they are expecting inflation to rise across one, two, five and 10 years.

In the first quarterly release of Tara-a-Umanga Business Expectations Survey, the RBNZ says it is specifically designed to synchronise with Monetary Policy Committee (MPC) meeting cycles, so the committee has near real-time expectations data.