"Today's decision by the Reserve Bank to leave the cash rate unchanged at 4.1 per cent is a prudent response to accumulating signs of a pronounced slowdown in activity," Innes Willox, Chief Executive of the national employer association Ai Group said today.
"As the Reserve Bank made clear in today's announcement, inflation is still too high and further rate rises may be required and it remains imperative that businesses, governments, and employees continue to exercise restraint in setting prices and in wage negotiations. It has never been clearer that missteps which add to the inflation burden will result in more rate rises and more pain for all.
"Looking further ahead, there needs to be a more determined focus on lifting our productivity performance so that real incomes growth can resume in a sustainable way," Mr Willox said.
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