24 Feb 2010

Interest rate expectations up slightly - survey

8:17 am on 24 February 2010

The Reserve Bank's latest survey shows firms' inflation expectations have edged up.

The central bank's survey shows business managers expect annual inflation to average at 2.7% over the next two years, compared to 2.6% recorded in the December survey.

The survey also shows firms expect inflation to average 2.1% over the coming year, unchanged since the last survey.

Respondents expect the economy will grow 2.1% over the next 12 months and to expand 2.6% over the next two years.

The Reserve Bank is expected to leave interest rates on hold at 2.5% until the middle of the year.