What Does the Reserve Bank of Australia (RBA) Do?
This episode of the How To Money Podcast covers what the Reserve Bank of Australia (RBA) actually does, the RBA cash rate, inflation and what the recent reduction in the cash rate means for us.
The Reserve Banks job is to achieve price stability, full employment, and the economic prosperity and welfare of the Australian people. The RBA does this by using an inflation target to help keep inflation between 2–3%, on average, using the cash rate. The Reserve Bank Board meets eleven times a year, on the first Tuesday of the month, to decide what the cash rate should be.
The cash rate has a strong influence over other interest rates, such as lending and deposit rates, and a reduction in the cash rate typically stimulates spending and inflation, while an increase in the cash rate typically dampens spending and inflation.
Show Notes: howtomoney.online/how-to-money-podcast
RBA Education: https://www.rba.gov.au/education
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