Reserve Bank governor rules out interest rate hikes until wages rise

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The Reserve Bank governor has dismissed any chance of a rate hike any time soon, after a week of financial turmoil sparked by fears of rapidly rising inflation and interest rates in the United States.

Philip Lowe said the recent market volatility would not have any impact on the growth outlook for Australia, which remains at “a bit above 3 per cent over the next couple of years”.

Giork 1aBut he also intensified his calls for higher wages to help boost the Australian economy.

Dr Lowe told a room of leading business figures that although “it is likely that the next move in interest rates in Australia will be up, not down”, the…

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