Inflation surprise; but rate cuts unlikely.

Inflation has surprised and come in at a lower number than predicted; but it doesn't look like that means home loan rates will fall.

Stats NZ said Consumer prices rose 1.2% in the first three months of the year, with annual CPI inflation easing to 6.7%, which was lower than most forecasts.

ASB senior economist Mark Smith says "today’s CPI report suggests that past OCR hikes are gaining traction. OCR cuts will only be contemplated when sub 3% CPI inflation is in prospect, but this is unlikely to be seriously considered until well into 2024."

"On balance, we expect a further 25 basis point OCR increase in May to 5.5%.