The Reserve Bank of Australia (“RBA”) is the central bank of Australia, established in 1960 and wholly owned by the Australian government. It is responsible for ensuring the stability of the Australian economy, maintaining full employment and ensuring the economic welfare of the Australian people.
The RBA’s goal with interest rates is to set them low enough so that employment opportunities are maximised and economic growth is fostered, but high enough so that inflation falls within the 2-3% band per year.
The RBA’s committee for deciding monetary policy is made up of the central bank governor (Philip Lowe), the deputy governor, the secretary to the treasurer and six other independent members who are appointed by the government. The committee meets on the first Tuesday of every month of the year apart from January.