The Reserve Bank of Australia (RBA) is Australia's central bank, responsible for managing the country’s monetary policy. The mandates of The RBA include maintaining the stability of the dollar, achieving full employment and promoting economic prosperity for the people of Australia. The RBA is responsible for setting interest rates that stoke economic growth and ensure inflation is kept between 2 and 3% per year. The RBA is comprised of the Reserve Bank Board, which make decisions on monetary policy and interest rate changes, and the Payments System Board, which oversee risk in the financial system and promote a competitive and efficient payments system.
Who runs the RBA?
The RBA is run by the Commonwealth Government of Australia, whose objective is to maintain a stable financial system. The bank was established in 1960, and from 1967 to 1983 it pegged its currency to the USD before establishing a free-floating exchange rate.