Growth in employment this year is likely to be substantially lower than over the past year. In that sort of environment, we forecast the central bank will leave interest rates unchanged for the rest of the year.

The good news is the surge in business investment is laying the groundwork for improved growth. This is what the central bank wants and so they will stay on the sidelines.

There's no need for the central bank to raise interest rates again.

The Reserve Bank will be happy with this result and be content to sit on the sidelines. Companies are wearing some of the price pressure rather than passing it on. When consumers are tightening their purses, retailers don't want to be cranking up prices.

The Reserve Bank has no need to tighten or to ease rates.