Reserve Bank of Australia

This essay investigates the possible decision of Reserve Bank of Australia (RBA) about cash rate to be made on 5 May 2015.The appropriated level of cash rate depends on the current economic conditions, both domestically and internationally. Also, it will be based on the three main objectives of monetary policy including price stability, full employment and the stability in economic growth. This essay will discuss the current economic conditions which are consistent to the tendency of cash rate that

The cash rate is the overnight money market interest rate implemented by the Reserve Bank of Australia. The Board of the Reserve Bank of Australia meet monthly to determine the cash rate for the following month, taking into account various economic conditions, both globally and domestically. Since August 2013, the cash rate in Australia has been at a record low, of 2.5 per cent (Reserve Bank of Australia, 2013). The three factors which will be considered in determining the cash rate for October

the responsibility of a nation’s central bank to manage these fluctuations through conducting effective monetary policy. The following paper will assume the perspective of the Reserve Bank of Australia (RBA) and critically analyze the past, present, and future of the Australian economy while considering specific sectors. With a GDP of over $1 trillion USD, the Australian economy is among the largest in the world (Cornett and Saunders, 2014). Australia is trading partners with the United States

The role and objectives of the RBA The Reserve Bank Of Australia (RBA) is the executive of targeted monetary policy, one of two macroeconomic weapons used to stabalise the economy. The RBA has two main responsibilities as the central bank of Australia. First is monitoring and controlling monetary policy to achieve full employment, target inflation and influence aggregate demand. Secondly, the RBA is in charge of the oversight and regulation of the financial markets and promotes the efficiency of

Describe the main role of the Reserve Bank of Australia and explain how Australia’s central bank uses monetary policy to influence the level of interest rates and economic activity in the economy. The importance and influence of the Reserve bank of Australia on the Australian economy Introduction The Reserve Bank of Australia plays a significant role to Australia’s financial market and economy as the central bank of Australia. The RBA operates in financial markets and presides over Australian’s

The Reserve Bank of Australia has cut the official cash rate to a low two percent through the use of expansionary monetary policy. Through decreasing the interest rate, the Reserve Bank of Australia aims to increase business investment in Australia, which in turn may increase aggregate demand. Monetary policy is controlled by the monetary authority of a country, in this case the Reserve Bank of Australia, to control the supply of money in an economy. This is done by targeting both inflation rates

1. Introduction: The Reserve Bank of Australia is considering an increase in the target cash rate by 25 basis points in the near future. It is the intention of this report to analyse the positive and negative impacts of a rise in interest rates on the loanable fund market in Australia. In order to analyse the impacts of an increase in interest rates on the loanable fund market, the reasons behind the possible rate rise in the near future will be looked upon. Charts and diagrams have been

The Central Bank The Reserve Bank of Australia (RBA) located in Sidney, South Wales, Australia, is the Central Bank of Australia. All the responsibility that this bank has over the country comes from the Reserve Bank Act 1959. The duty to contribute for the stability of their currency, maintain full employment and the economic prosperity with the welfare of Australian people. Using strategies as setting cash rate to settle the medium term of inflation target, managing to control a strong financial

A Closer Look at the Regulatory Structure in Australia: Understanding APRA, ASIC and RBA Doria Teo Introduction The current regulatory framework for the Australian finance sector largely owes its conception to the Financial System Inquiry (“the Wallis Inquiry”). The Wallis Inquiry had recommended the establishment of the twin peaks model, under which three specialist financial sector regulatory agencies operate. It was also recommended that these three regulatory agencies be based on the functions

The Australian Dollar (AUD), or “Aussie” for short, is the official currency of Australia. Its symbol is the same as the US Dollar, $. Exchange rate movements are commonly discussed in terms of US Dollars per AU Dollars (USD/AUD) or British Pound Sterling to AUD (GPD/AUD). While the Australian economy is only the 12th biggest economy in the world by nominal GDP, according to the Word Bank website, the AUD is the fifth most traded currency in the world by value (“GDP Rankings”, 1). The AUD was initially