The Reserve Bank of New Zealand's quarterly survey indicates a positive shift in inflation expectations. Respondents now anticipate inflation returning to the target band, a decrease of 81 basis points to 2.6% for the year ahead. Despite this fall, the survey also reveals expectations for further increases in the Official Cash Rate, projecting a rise of 71 basis points over the next year. This suggests that while inflationary pressures are easing, the central bank is expected to maintain a tight monetary policy. The data provides a mixed signal, indicating some success in curbing inflation but also a need for continued vigilance. Economists will be closely watching upcoming economic data to refine forecasts. These findings will likely influence the RBNZ’s upcoming policy decisions.