Labour's leader is picking Reserve Bank will again hold the Official Cash Rate

It has been frozen at 5.5 percent since May last year, with the latest decision due this afternoon.

Banks are divided in their predictions - Westpac, ANZ and Kiwibank anticipate a pause - and BNZ and ASB a drop.

The OCR is the Bank's main tool to cool inflation - able to drive up interest rates and dampen spending.

Chris Hipkins says he thinks the bank will still be waiting to see the effects of tax cuts.

He says tax cuts have only just come through, and they will want to check what impact that has on economic stimulus and inflation.