This report examines the Reserve Bank of Australia's (RBA) strategies to manage inflation and stabilize the Australian economy, particularly in the context of the COVID-19 pandemic. It details the RBA's implementation of monetary policy through open market operations and liquidity facilities. The report highlights the bank's response to the pandemic, including significant cash rate reductions and the introduction of government bond purchase programs to support economic activity. Post-pandemic, the RBA increased cash rates to combat soaring inflation, reaching levels not seen since 2015. The analysis concludes that while the pandemic adversely affected the Australian economy, the RBA's interventions helped the public, private, and household sectors recover. The report references various academic sources to support its findings on the RBA's policies and their economic impacts.