RTTNews | Nov 16, 2021 01:17AM EST

01:16 Tuesday, November 16, 2021 (RTTNews.com) - Reserve Bank of Australia Governor Philip Lowe said the latest data and forecasts do not warrant an increase in the cash rate in 2022. In order to consider a rate hike next year, the economy and inflation would have to turn out very differently from the central scenario.

"It is likely to take time to meet the condition we have set for an increase in the cash rate and the Board is prepared to be patient," Lowe added.

It is possible that faster-than-expected progress continues to be made towards achieving the inflation target. If so, there would be a case to lift the cash rate before 2024, the governor noted.

Lowe said it is also possible that progress will be slower than expected, which would result in the cash rate staying at current levels for longer.

In terms of the cash rate, the Board has said that it will not increase the cash rate until inflation is sustainably in the target range. It is likely that wages will need to be growing at 3 point something percent to sustain inflation around the middle of the target band.

"This doesn't mean that we have a target for wages growth or that wages growth is the only determinant of inflation," said Lowe.

At the November monetary policy meeting, policymakers said they will not raise the cash rate until certain criteria are met, and is prepared to be patient.

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