Workers are seeing their wages grow at their fastest pace in almost a decade amid high demand across the country. But they face further pain with predictions of higher interest rates to keep inflation at bay and another 10 per cent fall in house prices. Once inflation is taken into account, real wages fell by 4.2 per cent over the past year. The Reserve Bank is likely to lift the official cash rate by another quarter percentage point month, to 3.1 per cent. The International Monetary Fund said Australia was likely to avoid a recession. The IMF report said the central bank and government need to tighten policy further to “rebalance domestic demand” and keep inflation expectations anchored.