Reserve Bank of Australia

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.

Why We Still Need the Bad Banks

And the people offering these services and technologies are, for the most part, start-ups. These are ambitious companies trying to stay at the cutting edge of new finance. It’s fantastic for consumers. We now have more options than ever before.

This Is Why the Aussie Market Soared

With trade war tensions escalating between the US and China, it’s surprising to see that Aussie stocks have powered ahead. Ironically enough, we have a falling Aussie dollar to thank for this.

As Good As It Gets?

The Reserve Bank continues to hold the official cash rate at 1.5%. What’s going on? Is this as good as it gets for the Aussie economy?

The Second Half Slowdown

The smart money flow index has just plunged. There’s a risk that you’re going to see another leg down in US stocks very shortly. What will happen next?

I Say Bollocks to That

The RBA reckons China’s debt is now around 260% of GDP. If the US and European economies slow into the second half of 2018 and into 2019, then China will feel the effect. How will this impact Australia?

How Do You Feel About Tax Cuts?

Prime Minister Malcolm Turnbull may be one step closer to passing corporate tax cuts. This comes after One Nation’s Senator, Pauline Hanson, backflipped and announced she would back the company tax plan. Ms Hanson struck a deal with the Turnbull government. But what does this tax cut plan mean for Aussie businesses and workers?

Stagnant Wage Growth to Continue into 2020

Australians’ pay packets may be growing in pure numerical terms. But once you factor in interest, you can see that wage growth has been steadily declining since the 1970s. No matter how hard you try and spin in, there doesn’t seem to be any relief in sight for Aussie workers.
Money Morning Australia