A rate hike next year may be appropriate: Australia central bank head

[SYDNEY] Reserve Bank of Australia (RBA) Governor Philip Lowe said on Friday it may be appropriate to lift the cash rate from current record lows of 1.50 per cent sometime next year.

Mr Lowe noted the probability of rates going in either direction was still broadly balanced, adding he would be concerned if inflation remained below the RBA's mid-term target band of 2-3 per cent.

"The (bank's) strategy is really around keeping interest rates low, having the labour market tighten up, wage growth pick-up and inflation pick up," Mr Lowe said, responding to questions from lawmakers at a parliamentary economics committee in Sydney.

"And broadly that strategy's working. I'd like it to work more quickly."

REUTERS