Reserve Bank of Australia

We are Australia's central bank. We conduct monetary policy, work to maintain a strong financial system and issue the nation's currency.

Financial institution, bank

From the business: Identifies as women-owned

Service options: Drive-through

Our job here at the Reserve Bank is to serve the community. The Parliament of Australia has given the Reserve Bank some very important responsibilities. It is our duty to promote the economic prosperity and welfare of the people of Australia, both now and into the future. We do this in many ways, including by setting monetary policy to maintain price stability and full employment, by contributing to the efficiency and stability of the payments system and the stability of the financial system, and by banking the Australian Government and providing the nation’s banknotes.
Probably the thing we do that is most familiar to people is set the level of interest rates. This is known as ‘monetary policy’, where we change interest rates to try to smooth fluctuations in the economy. The interest rate we control is the cash rate, which is the rate that banks charge each other to borrow overnight. Now this interest rate influences other interest rates in the economy, such as those charged on your loans, or those you earn on your savings. Changes in interest rates influence people’s decisions to buy things or invest money, and they affect the exchange rate and the value of any assets that people might hold, such as homes or shares. All this affects economic activity. In deciding where to set the cash rate, we want to keep inflation low and stable, averaging 2-3 per cent - our inflation ‘target’, if you like. But we want to do it in a way that keeps the level of employment as high as possible. These outcomes are essential for a prosperous economy.
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The front page of the Reserve Bank of Australia's website