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.