Wage growth has dropped to its lowest level since the current data series began in 1997, adding to chances that the Reserve Bank of Australia will cut interest rates again.

The Australian Bureau of Statistics said on Wednesday the wage price index for the fourth quarter last year grew at 0.6 per cent, the same as in the September and June quarters, leaving the annual rate at 2.5 per cent.

The wage price index grew at its lowest annual rate in 18 years.

This is the lowest annual rate in 17 years.

The results were in line with expectations and the Australian dollar was little changed, after having spiked before the data release.