SYDNEY (Reuters), Australia’s highest central banker has pushed back against market betting for a rise next year in interest rates. The top official argued that inflation at home would be much lower than those seen elsewhere in developed countries.

Philip Lowe, Governor of the Reserve Bank of Australia (RBA), spoke on Tuesday. He noted that Australia’s inflation started at a lower point in comparison to many of its counterparts. Also, Australia’s wages system was more rigid.

Lowe stated that “the latest data and forecasts don’t warrant an increase of the cash rate 2022”, pointing out market prices for hikes as early as June.

For the Board to increase interest rates next year, it would be necessary for inflation and economy to change significantly from what is currently being presented.

The minutes of Tuesday’s RBA November policy meeting showed that the Board believed inflation risks had risen, however the main case for no rate increase until 2024 was maintained.

The markets are betting on three or more hikes in the next year due to inflation pressures worldwide and especially in the United States.

Lowe emphasized that Australia’s situation was different. Although core inflation rose to 2.1% during the third quarter of 2018, it was still within the target range of 2 to 3% set by the RBA for the first six years.

Lowe stated that there was no evidence of an increase in wage growth as broad-based and widespread like in the United States.

The participation in the local labor market was not too far away from records, and wage-setting systems tend to result only in gradual increases.

He said, “Our business liaison suggested that most businesses maintain a strong cost-control mindset and are looking to use other measures than increasing base wages to retain and attract staff.”