About the RBA

The Reserve Bank of Australia (RBA) is Australia's central bank and derives its functions and powers from the Reserve Bank Act 1959. Its duty is to contribute to the stability of the currency, full employment, and the economic prosperity and welfare of the Australian people. It does this by conducting monetary policy to meet an agreed medium-term inflation target, working to maintain a strong financial system and efficient payments system, and issuing the nation's banknotes. The RBA provides certain banking services as required to the Australian Government and its agencies, and to a number of overseas central banks and official institutions. Additionally, it manages Australia's gold and foreign exchange reserves.

Role and Functions

Watch video: Role and Functions

Transcript

Philip Lowe, Governor (2016 – Present)

The Parliament of Australia has given the Reserve Bank some incredibly important responsibilities. The one the community's most familiar with is that the first Tuesday of every month except for January, the Reserve Bank Board meets to set the cash rate. The cash rate's very important because it influences the cost of people's mortgages, the rate of return they get on their savings. It influences the exchange rate and the value of people's assets. So the community has a lot of interest in those decisions. The Reserve Bank also produces and distributes Australia's banknotes. We have some of the best quality banknotes in the world. We've got fantastic technology. We were the first country to introduce the polymer banknotes. We were also one of the first countries to have a man and a woman on every single banknote which I'm particularly proud of. The banknotes are produced in a purpose built facility down on the outer suburbs