Employers Chief Urges Restraint

Employers Chief Urges Restraint In Wake Of Reserve Bank Decision

The Reserve Bank has given organised labour the benefit of the doubt in leaving the official cash rate unchanged today, says NZ Employers' Federation chief executive Anne Knowles.

"Today's monetary policy statement indicates that the Reserve Bank is viewing some of the increases in inflation over recent months as "one-offs".

"It is to be hoped that union leaders will take the lead from today's announcement and apply restraint in the coming months, despite the temptations posed by the new employment legislation," Ms Knowles said.

"The slump in business and consumer confidence, soft retail sales and some uncertainty in respect to labour market outcomes are all likely to have had a bearing on the Reserve Bank's decision.

"Figures released today by Statistics New Zealand show that employment growth has levelled off, which does not augur well for further reductions in unemployment over the coming year.

Now is not the time for upwards wage pressures. Restraint is required for the country to begin the path back to economic growth," Ms Knowles said.

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