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.

Who Wants to Be the Teacher’s Pet?

The ANZ Bank led the charge after the RBA’s announcement. ANZ’s decision to come out so early with their announcement was, depending on your view, either foolhardy or brave. For both the CBA and NAB, it was a pat on the head from the Treasurer. A sign that they were toeing the line.

Listen, RBA, to Money Morning Readers

We’re a little over a week away from another rate decision. Will they or won’t they cut rates? if the RBA continues to look at unemployment and inflation as leading indicators for the economy, we could see far lower rates than 1.5%. All they need to do is listen to Money Morning readers to see this won’t work anyway.

The State of Australia’s Economy Still Baffling RBA

The tension between Australia’s weak economy and strong employment is mystifying, even the nation’s most qualified economists. So, don’t be too bothered if you are a little out of your depth when it comes to Australia’s economy. But, the RBA has been crippling with such tensions for years...

RBA Interest Rates Remain Unchanged: A Look Ahead

The RBA  left the interest rate unchanged yesterday at 1.5%. This is in line with a policy that has been in place since August 2016.The longer-term picture for interest rates, however, could involve one or possibly two 25 basis point cuts this year.
Money Morning Australia