Receive the latest mybusiness news
Copyright © 2020 MOMENTUMMEDIA

RBA makes rate announcement: September 2017

Adam Zuchetti
Adam Zuchetti
05 September 2017 1 minute readShare
Dollar, graph, per cent, chart

The Reserve Bank of Australia has unveiled its decision on interest rates following its monthly board meeting.

Official interest rates are left on hold at 1.5 per cent for the 12th consecutive month.

Economists and commentators have widely forecast there to be no change again this month, particularly given that many banks have already been cutting their interest rates on a range of loans – effectively doing the RBA’s job for it.


While inflation is currently sitting at 1.9 per cent – just below the bank’s 2 per cent to 3 per cent target – the RBA noted at last month’s meeting that inflation had increased somewhat since 2016, reducing the risk of deflation in the economy.

However, wages have dominated economic debate in recent months, with wage growth struggling to keep pace with already low inflation. The RBA said last month that there was anecdotal evidence of an upward swing in wages to come.


“Information from liaison indicated that some employers were finding it harder to attract workers with particular skills. If this were to broaden, wage growth could increase more quickly than forecast, which would see inflationary pressures also emerge more quickly,” it said.

“However, wage and price inflation had not increased by as much as expected in other economies around the world that were already close to full employment, which raised the possibility that low inflation in Australia might also persist longer than forecast.”



RBA makes rate announcement: September 2017
mybusiness logo
Adam Zuchetti
Adam Zuchetti

Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016. 

The two-time Publish Awards finalist has an extensive journalistic career across business, property and finance, including a four-year stint in the UK. Email Adam at [email protected]

Leave a Comment

Latest poll

Did you expect more from the government's JobKeeper extension?