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Reserve Bank Of Australia Research Paper

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Reserve Bank Of Australia Research Paper
The Reserve Bank of Australia (RBA) is Australia’s central bank. Its duties include stabilising the currency, full employment, and the economic prosperity and welfare of the Australian people. It does this by setting the cash rate, which affects the inflation rate, maintaining an efficient financial and payments system and distributing banknotes. The RBA has six main functions. These are:
1. Conduct monetary policy
2. Maintaining financial system stability
3. Holding of Commonwealth assets, such as Gold
4. Money supply (note issue)
5. Banker to commercial banks
6. Banker to the Government
The RBA controls the cash rate and the inflation rate in Australia, which in turn allows the banks to set their interest rates based on the press releases
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