Here, you’ll find the latest news and updates regarding the Reserve Bank of Australia (RBA) — the central bank of Australia — wholly owned by the Australian government and currently governed by Philip Lowe.
The RBA is responsible for issuing and managing the Aussie dollar, and with the banking and registry services for federal agencies and other international banks.
The RBA manages the Aussie dollar by setting the interest rate in overnight money markets — the goal is to set the interest rate low enough that it promotes maximum Australian employment and economic growth, but not so low that it sparks inflation higher than 2–3% per year.
This interest rate filters through the rest of the financial system, affecting the rates in which banks can lend to businesses and consumers.
The RBA operates with three main concerns in mind: the stability of Australia’s currency, the maintenance of full employment in Australia, and the economic prosperity of Australia’s peoples.
It attempts to achieve this by setting the cash rate to meet an agreed medium-term inflation target, maintaining a strong financial system and efficient payments system, as well as issuing Australia’s physical currencies.
Of course, it’s important to know what’s going on across the financial system, but it’s just as important to concentrate on what’s happening here, in your own backyard.
After all, most of our news, in some way, links back here.
Read on for the latest news and updates regarding the RBA here, at Money Morning.