RBNZ Set to Extend Rate Pause, Keep Gauging Fuel Shock Fallout

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New Zealand’s central bank is expected to keep interest rates unchanged on Wednesday and restate its willingness to look through the initial inflationary impact of surging fuel prices that threaten a stuttering recovery.

Economists reckonBloomberg Terminal the Reserve Bank’s Monetary Policy Committee will hold the Official Cash Rate at 2.25% when it releases its decision at 2 p.m. Wellington time. While the announcement won’t include updated forecasts — it’s not a Monetary Policy Statement — the RBNZ has signaled it will discuss the revised outlook for inflation.