The Reserve Bank of Australia has forecast higher inflation and economic growth and for unemployment to fall to a 2008 low of 4.5 per cent next year, but it is insisting record low interest rates will remain in place for another three years to drive up wages growth.

The bank is likely to upgrade its wage growth forecasts in its quarterly statement on monetary policy on Friday and has acknowledged the surge of investors in the heated property market after lending to that market jumped 12 per cent in March, its largest rise since 2003.