Economic Analysis of Reserve Bank of Australia's Monetary Policy and COVID-19 Impact

Reserve Bank of
Australia
R ESER VE BAN K IN C R EASES O FFIC IA L R AT E AMID IN FLAT ION
FEAR S

Reserve Bank of Australia
The bank is identified as the central bank of Australia, established in 14
January, 1960.
The ownership of the bank is 100% held by the state, with Philip Lowe as
its Governor.
The main policy of the bank is to control the inflation conditions while
maintaining rates between 2-3%.
The Reserve Bank also provides services to the Government of Australia
and other central banks.

Implementation of the Monetary Policy
Through the open market operations, where the
treasury bills and government securities are purchased
or sold.
The Intra-Day Liquidity Facility is also available to
equity share account holders, with proceeds valued at
market price.
Overnight Liquidity facilities provided to the Equity
shareholders, with the repo rate being 0.25%.
Furthermore, the shareholders may invest in short term
deposits, by clearing the tender process.