SYDNEY, AAP – The Australian share market has closed higher as investors overlooked the Reserve Bank governor’s comment that higher interest rates were plausible in 2022.

The market opened higher on Wednesday and stayed that way after Philip Lowe told the National Press Club more about Tuesday’s decision not to forecast a rate hike.

However, Dr Lowe conceded raising rates this year was one plausible scenario.

The benchmark S&P/ASX200 index closed up 81.7 points, or 1.17 per cent, to 7087.7 points.

The All Ordinaries index closed higher by 86.8 points, or 1.19 per cent, to 7399.6 points.

The dollar was buying 71.37 US cents at 1625 AEDT, higher from 70.63 US cents at Tuesday’s close.