RBNZ business survey 2-year inflation expectations at 2.55%

The RBNZ's two-year-ahead business inflation expectation print is the survey reading the Bank has historically leaned on hardest as a gauge of whether expectations remain anchored, and it has on past occasions carried more weight with the committee than the one-year series. A print at 2.55% sits inside the 1-3% target band but above the 2% midpoint, a zone the RBNZ has in previous cycles treated as tolerable but not yet comfortable, since the Bank has said it wants expectations converging on the midpoint to justify easing. The established read-through runs through the short end of the NZ curve and NZD rate differentials rather than the long end: readings further from the midpoint have in the past reduced the priced odds of near-term cuts, while prints closer to 2% have done the reverse. The distinction worth drawing is between this survey and the household series, which tends to run higher and carry less policy weight. Follow-ons are the direction of change versus the prior quarter, which matters more than the level, and any commentary from officials framing the print against the easing bias, with the next OCR decision and Monetary Policy Statement the natural test points.