Our Role RBA

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Australias Central BankCommenced operations in 1960

Monetary policy

Market operations

Financial stability

Payments system

Government banking

Banknotes


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Monetary PolicyOur objectivesStability of the currency

Full employment

Economic prosperity and welfare of

the people of Australia

Inflation target

Keep inflation at 2!3 per cent, on

average, over the medium term

Reserve Bank Board

Governor, Deputy Governor, Treasury Secretary and six external members

Monthly meeting includes a decision about setting the cash rate


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Monetary Policy The RBA adjusts the cash rate to try and keep the growth of total spendingin line with potential output thereby ensuring that inflation is low and stable

Amount ofgoods and

services

Time

Potential outputTotal spending

Fallingunemployment,rising inflation

Risingunemployment,falling inflation


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Cashrate

Exchangerate Import prices

Expectations

Interest rates

Spending

Inflation

Monetary Policy Adjusting the cash rate affects spending and inflation throughseveral channels, such as:


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Market Operations

To implement monetary policy, the

RBA sets the cash rate

Banks borrow or lend from each

other overnight at the cash rate

Open market operations keep thecash rate at target each day


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Financial Stability Smooth flow of funds between savers

and investors supports economic growth

Safe and robust financial market

infrastructure

Coordinate with financial regulators

Crisis management capability,

including liquidity support

The RBA monitors financial system health,

published in Financial Stability Review


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Payments System Allows consumers and businesses to

transfer funds to each other

Payments System Board

Promotes efficiency and competitionin means of payment, including

credit and debit cards

Oversees key financial marketinfrastructure to promote stability in the payments system

Reserve Bank Information and Transfer System (RITS)

The RBA runs Australias real-time gross settlement system


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Payments System RBA at the core, settling all electronic transactions between banks securely

RBA

(RITS)

International& high-value

payments

Debtsecurities

Transfersbetweenbanks

Cards, directentry, cheques

Equitysecurities


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Government Banking Banker to the Australian

Government, maintaining its

core cash accounts

Facilitate government payments

to households and businesses,including on behalf of:

! Centrelink

! Medicare

! Australian Taxation Office


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Banknotes The RBA manages Australias banknotes, including

production, issue and distribution

Aim to maintain Australians confidence

in banknotes as a payment method

Printed on polymer substrate withhard-to-counterfeit security features

Meet the demand of households and businesses

for banknotes

Maintain high quality by withdrawing and replacing

damaged notes
http://banknotes.rba.gov.au/http://banknotes.rba.gov.au/http://banknotes.rba.gov.au/http://banknotes.rba.gov.au/http://banknotes.rba.gov.au/http://banknotes.rba.gov.au/http://banknotes.rba.gov.au/http://banknotes.rba.gov.au/http://banknotes.rba.gov.au/http://banknotes.rba.gov.au/http://banknotes.rba.gov.au/http://banknotes.rba.gov.au/http://banknotes.rba.gov.au/http://banknotes.rba.gov.au/http://banknotes.rba.gov.au/http://banknotes.rba.gov.au/http://banknotes.rba.gov.au/http://banknotes.rba.gov.au/http://banknotes.rba.gov.au/http://banknotes.rba.gov.au/http://banknotes.rba.gov.au/http://banknotes.rba.gov.au/http://banknotes.rba.gov.au/http://banknotes.rba.gov.au/http://banknotes.rba.gov.au/http://banknotes.rba.gov.au/http://banknotes.rba.gov.au/http://banknotes.rba.gov.au/http://banknotes.rba.gov.au/http://banknotes.rba.gov.au/http://banknotes.rba.gov.au/http://banknotes.rba.gov.au/http://banknotes.rba.gov.au/http://banknotes.rba.gov.au/http://banknotes.rba.gov.au/http://banknotes.rba.gov.au/http://banknotes.rba.gov.au/http://banknotes.rba.gov.au/http://banknotes.rba.gov.au/http://banknotes.rba.gov.au/http://banknotes.rba.gov.au/http://banknotes.rba.gov.au/


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Australias Central Bank

Our locations

Head Office in Sydney

State Offices in Adelaide, Brisbane,

Melbourne and Perth

Branch in Canberra

Overseas offices in Beijing, London and

New York


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For more information

Visit the Reserve Bank website: rba.gov.au

Monetary policy

Market operations

Financial stability

Payments system

Government banking

Banknotes
http://banknotes.rba.gov.au/http://www.rba.gov.au/fin-services/index.htmlhttp://www.rba.gov.au/payments-system/index.htmlhttp://banknotes.rba.gov.au/http://banknotes.rba.gov.au/http://www.rba.gov.au/fin-services/index.htmlhttp://www.rba.gov.au/fin-services/index.htmlhttp://www.rba.gov.au/payments-system/index.htmlhttp://www.rba.gov.au/payments-system/index.htmlhttp://www.rba.gov.au/fin-stability/index.htmlhttp://www.rba.gov.au/fin-stability/index.htmlhttp://www.rba.gov.au/mkt-operations/index.htmlhttp://www.rba.gov.au/mkt-operations/index.htmlhttp://www.rba.gov.au/monetary-policy/index.htmlhttp://www.rba.gov.au/monetary-policy/index.htmlhttp://www.rba.gov.au/http://www.rba.gov.au/

Documents

Our Role RBA