SYDNEY: Australia's central bank said on Wednesday it was seeing more evidence that underlying inflation pressures are gathering steam, amid signs that wages were picking up amid very tight labour markets.

Appearing before a parliamentary committee, Reserve Bank of Australia (RBA) Deputy Governor Michele Bullock said the bank had changed its policy outlook to reflect those pressures and would be revising higher its forecasts for inflation.

Australia’s central bank holds rates, drops ‘patient’ pledge

At its April Board meeting on Tuesday, the RBA dropped a previous pledge to be "patient" on policy, fuelling market speculation it could raise interest rates as early as June.