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Also from the summary of the RBNZ meeting: -...>

RBNZ: Also from the summary of the RBNZ meeting:
- The Committee welcomed the recent employment and wage data but noted that
private sector wage growth was subdued despite businesses having difficulty
finding labour. The members discussed that the recent slowdown in growth could
dampen wage inflation by more than assumed. Some noted that if cost pressures
remain elevated, firms may pass on costs to consumer prices by more than
assumed, while others viewed the wage pass through as a natural consequence of a
tight labour market and policy stimulus.
- The Committee noted that low business confidence had dampened business
investment in 2018 and had remained weak in mid-2019. The members discussed that
if sentiment remained low, perhaps due to global economic conditions or if
profitability remains squeezed, growth might not increase as anticipated over
the medium term. The members also noted that the shift in domestic production
from manufacturing towards services was also dampening business investment.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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