Central Bank urges restraint on wages

The Central Bank says continued wage restraint is necessary to help the economic recovery.

In its latest quarterly forecast, the bank said the Croke Park deal will give credibility to the country internationally as it will bring industrial relations peace.

It is mixed news in today's forecast from the Central Bank.

It notes that recovery is underway with some growth in the economy in the first six months, and predicts growth of two to three percent in full for next year.

But the bank warns that the fall in employment won't stabilise before the end of this year, and that the unemployment pressures will only begin to disappear in 2011 with real change not coming until 2012.

It says sorting out the banks, the tough budgetary measures and continuing work on competitiveness is necessary.

To that end it says continuing wage restraint is necessary but says the Croke Park agreement for the public sector will be of benefit.

Inflation is set to return by the end of this year, but will show Ireland is below our euro competitors, and remain somewhat low into next year.


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