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Australia's most powerful banker is predicting a prolonged closure of the national border will eventually push up wages.
Pay levels have been stuck below the long-term average of 3 per cent since mid-2013 and grew by just 1.5 per cent in the year to March.
The federal government has indicated Australia will remain closed to foreigners until mid-2022.
But Reserve Bank of Australia governor Philip Lowe said the inability of employers to source skilled migrants would lead to higher wages.
'There's a potential upside risk to wages from the closure of the borders,' he said.
'If the borders remain closed for a very extended period of time, we'll see more and more of these pressures in the labour market.'
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But Reserve Bank of Australia governor Philip Lowe said the inability of employers to source skilled migrants would lead to higher wages: 'There's a potential upside risk to wages from
