World Economy

Slowest Inflation in NZ

Slowest Inflation in  NZSlowest Inflation in  NZ

New Zealand posted the slowest inflation in more than 15 years in the first quarter, supporting some traders’ expectations that the central bank will cut interest rates later this year. The consumers price index rose 0.1% from a year earlier, the smallest increase since the third quarter of 1999, Statistics New Zealand said in Wellington Monday. The median forecast of 16 economists surveyed by Bloomberg was for a 0.2% increase. Prices declined 0.3% from the fourth quarter. Benign inflation adds to signs Reserve Bank of New Zealand Governor Graeme Wheeler can keep the official cash rate unchanged at 3.5%, while some traders bet he’ll cut borrowing costs before the end of the year.