Australia rate hike brought nearer by inflation, wages: RBA

AUSTRALIA'S central bank is nearer to raising interest rates for the first time more than a decade as inflation accelerates and a tightening labour market nudges wage growth higher, minutes of its April policy meeting showed on Tuesday.

The Reserve Bank of Australia’s (RBA) Board saw core inflation rising above the bank’s 2-3 per cent target range in the March quarter. Wage growth was still lagging but likely to pick up as the unemployment rate fell to 4 per cent and below.

“These developments have brought forward the likely timing of the first increase in interest rates,” the minutes showed. “Over coming months, important additional evidence will be available on both inflation and the evolution of labour costs.” REUTERS