Breman's comments point to a central bank monitoring a genuine upside inflation risk from oil without yet committing to a specific policy response ahead of October, keeping optionality intact rather than pre-signalling a move. For the New Zealand dollar, an acknowledgment that inflation could run somewhat hotter than the September Monetary Policy Statement assumed is a mildly hawkish data point, though it is balanced by Breman's parallel emphasis on an uneven and still-recovering economy, which cuts against reading this as a clear signal of imminent tightening. Markets had already been pricing a pause at the October meeting following September's hike to 2.75%, and nothing in these remarks appears to shift that base case, though the explicit reference to oil as a source of upside inflation risk keeps energy prices firmly in view as a swing factor for the RBNZ's next assessment.--Breman says oil is now pushing New Zealand's inflation outlook higher than the RBNZ assumed just weeks ago, even as the broader recovery keeps chugging along unevenly.Summary:RBNZ Governor Anna Breman said that if higher oil prices persist, they are expected to result in somewhat higher near-term inflation than assumed in the September Statement.Breman said the Bank will assess incoming data and global developments ahead of its next decision in October, remaining focused on the inflation outlook.She said significant risks to the economic outlook remain.Breman said the RBNZ expects the economic recovery to strengthen and broaden over time.She said current data suggest the recovery is continuing in the present quarter but remains uneven.Reserve Bank of New Zealand Governor Anna Breman said Monday that persistently higher oil prices are expected to push near-term inflation somewhat above the level assumed in the Bank's September Monetary Policy Statement. The comments add an updated data point to the RBNZ's inflation outlook just over a month ahead of its next scheduled decision, without committing the Bank to a specific policy response.Breman said the RBNZ will assess incoming data and global developments ahead of its October 28 decision, reiterating that the Committee remains focused on the outlook for inflation. She said significant risks to the economic outlook remain, a characterisation consistent with the RBNZ's recent commentary acknowledging both upside inflation risks tied to energy costs and downside risks to activity from softer domestic demand.On growth, Breman said the Bank expects the economic recovery to strengthen and broaden over coming quarters. She said current data suggest the recovery is continuing in the present quarter, though it remains uneven across sectors of the economy. Taken together, her remarks describe a central bank balancing a firming near-term inflation picture, driven specifically by oil, against a recovery that is progressing but not yet broad based, a combination that leaves the timing and scale of any further policy tightening dependent on how both factors evolve over the coming weeks.The comments follow the RBNZ's September 2 decision to raise the Official Cash Rate by 25 basis points to 2.75%, its second consecutive increase after resuming its tightening cycle in July. That decision reflected a Committee split on the balance of risks, with a majority of members flagging upside inflation risks tied to persistent energy costs and the possibility of businesses passing on higher costs more broadly, while other members pointed to downside risks from weak domestic demand. Markets have generally priced October as a likely pause before a further move later in the year, and Breman's latest remarks on oil and inflation add a fresh, though not yet decisive, input into that assessment ahead of the Bank's next meeting. This article was written by Eamonn Sheridan at investinglive.com.