Reserve Bank Governor Philip Lowe (Image: AAP/Joel Carrett)

With Reserve Bank (RBA) governor Philip Lowe saying it is "plausible" that interest rates could rise later this year under the right circumstances, it suggests a scenario in which Australian workers could face falling real wages and rising interest rates on their mortgages.

Just ask New Zealand workers.

Yesterday Statistics NZ revealed the Kiwi unemployment rate had fallen to 3.2% -- the lowest since comparable records started in 1986. But New Zealand's labour cost index (LCI), similar to the wage price index (WPI) in Australia, only rose at an annualised rate of 2.6% in the quarter, up from 2.4% in the September quarter (2.4% is our current WPI rate).