Many financial commentators are auguring that Reserve Bank Governor, Alan Bollard will introduce a hike in the Official Cash Rate, when he unveils its quarterly fiscal announcement tomorrow morning.

However, the Council of Trade Unions has said that the Reserve Bank does not require lifting the Official Cash Rate (OCR).

The CTU believes that hiked OCR could boost up the exchange rate and rates for business lending, at a time when New Zealand's recovery seems to be imminent.

The Reserve Bank initiated reviewing its OCR tomorrow and is speculated to hike the rate by 25 basis points to 2.75% after holding it at 2.5% since April 2009.

TVNZ Business Editor, Corin Dann explains, "The market has been pricing in a 70-80% likelihood of a hike but continuing market turmoil worldwide will be a big factor in Alan Bollard's decision".

Rosenberg finds that workers in New Zealand are already affected by worsening job sector, shortened work hours and pay falling behind inflation, the Emissions Trading Scheme and higher ACC taxes.

The union is in a belief that instead of introducing hikes on interest rates; the Reserve Bank should ponder over controlling house lending by other policies like regulating conditions on loans and bank capital requirements.