Reserve Bank – Australia

Reserve Bank – Australia
The main responsibility of Reserve Bank in Australiais monetary policy. The decisionsregarding the policy are taken by the Board of Reserve Bank, with an aim of attaining stable and low inflation on the medium term. This bank is an institution which is responsible in managing the currency policies of Australia. It was established in 1911, and achieved the existing statusin 1960with the shift of the banktowards the regulation and also away from the commercial banking. Like several other banks, the reserve bank in Australia also has a power for increasing or decreasing the supply of money. This bank also purchases and sells the treasury bonds to the main traders which increase money for the government operations and pumping finance into an economy at dangerousjunctures. This bank publishes several reports on the annual and monthly basis. As the balance of trade depends on the money supply of the nation, Australia’s Reserve bank is regarded as vitalin finding the behavior of Australian financial market.