RBNZ Governor Bremen says will see higher inflation over the near term and some growth impacts, adds will be looking if firms are passing on costs or absorbing them, also looking for second round effects and will act if inflation expectations shift

RBNZ Governor Bremen's comments suggest a shift towards a more attentive stance on inflation, indicating potential upward pressure and growth impacts in the near term. The mention of monitoring firms' cost absorption versus pass-through signals a watchful eye on inflation expectations, which may imply that the RBNZ is preparing to adjust its policy if inflation dynamics worsen.