Suppose that the six month interest rate on Australian Government Bonds is 1.5%pa and the expected inflation rate in the Australia over the next six months is 0.9%pa. The six month interest rate on New Zealand Government Bonds is 2.1%pa. Suppose that the International Fisher Effect Aholds. Given these rates we can say that: O The expected inflation rate in New Zealand must be lower than that of Australia. None of the other answers. The expected inflation rate in New Zealand is approximately equal to the six month interest rate on Australian Government Bonds.. There is not enough information to ascertain the expected inflation rate in New Zealand. The expected inflation rate in New Zealand must be approximately 2.7%pa