The Reserve Bank of New Zealand’s (RBNZ) quarterly survey of expectations showed that business managers expect inflation to slow to 2.34% over the next two years in Q3 2026, down from 2.53% in the previous period, marking the lowest reading since Q4 2025. Meanwhile, one-year inflation expectations also moderated to 2.60%, down from 3.41% in Q1. Conversely, longer-term expectations accelerated, with five-year inflation forecasts rising to 2.31% from 2.22%, while ten-year expectations edged up to 2.20% from 2.19%. In terms of monetary policy, respondents expect the Official Cash Rate (OCR) to rise to 2.73% from 2.34% by the end of the September quarter and further to 3.21% over the next year. The survey was conducted after the RBNZ’s monetary policy decision in May 2026.