By Stella Qiu

SYDNEY (Reuters) -Australian wages rose at a steady pace in the third quarter with the public sector driving the gains, a solid result that, along with a string of upbeat data, reinforced the case for steady interest rates.

Figures from the Australian Bureau of Statistics showed its wage price index rose 0.8% in the third quarter, same as the previous quarter and in line with forecasts.

Annual pay growth held at 3.4%, driven by a pickup in public wage growth to 3.8%, the highest since the second quarter last year. Growth in the private sector, on the other hand, slowed to 3.2%, the lowest in over three years.

“State government pay rises contributed 82% of public sector wage growth this quarter,” said Michelle Marquardt, head of prices statistics at the bureau.

On a quart

See Full Page