Rba

Rba, commonly abbreviated as RBA in reference to the Reserve Bank of Australia, is the central bank of Australia. It is responsible for monetary policy, the issuance of currency, and the maintenance of a stable and efficient payments system. The bank operates under the Reserve Bank Act 1959 and is headquartered in Sydney, with offices in major cities.

History and role. The Rba was established by legislation in 1959 and began operations in 1960, taking over central banking functions from the Commonwealth Bank. It was created to provide an independent institution focused on monetary policy, financial stability, and the nation’s payments infrastructure.

Monetary policy framework. The Rba aims to keep inflation low and stable, targeting a 2 to 3 percent range over the medium term. The policy instrument is the cash rate target, adjusted by the Board in response to economic conditions. It uses open market operations and other facilities to align the actual rate with the target and communicates through the quarterly Statement on Monetary Policy and public speeches by the Governor.

Other duties. The bank issues and manages the nation’s banknotes and coins, and it oversees the smooth functioning of the payments system. It acts as lender of last resort to the financial system during times of stress and conducts research and analysis to support policy decisions. It also participates in international central banking forums.

Governance and accountability. The Governor chairs the Reserve Bank Board, which includes external members. The Rba operates with policy independence within the framework of the law and is accountable to Parliament, primarily through the Treasurer. It publishes an annual report and other public materials.

Publications and data. The RBA releases the Bulletin, the quarterly Statement on Monetary Policy, and the Financial Stability Review, along with extensive economic data and research.