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Reserve Bank of Australia

The Reserve Bank of Australia (RBA) came into being on 14 January 1960 as Australia's central bank and banknote issuing authority, when the Reserve Bank Act 1959 removed the central banking functions from the Commonwealth Bank. The bank has the responsibility of providing services to the Government of Australia in addition to also providing services to other central banks and official institutions. It currently consists of the Payments System Board, which governs the payments system policy of the bank, and the Reserve Bank Board, which governs all other monetary and banking policies of the bank.

Articles by Reserve Bank of Australia

Statement by Philip Lowe, Governor: Monetary Policy Decision

9 days ago

At its meeting today, the Board decided to maintain the current policy settings, including the targets
of 10 basis points for the cash rate and the yield on the 3-year Australian Government bond, as
well as the parameters of the Term Funding Facility and the government bond purchase program.
The global economy is continuing to recover from the pandemic and the outlook is for strong growth this
year and next. The recovery remains uneven, though, and some countries are yet to contain the virus.
Global trade in goods has picked up strongly and commodity prices are mostly higher than at the start of
the year. However, inflation remains low and below central bank targets.
Sovereign bond yields have been steady recently

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Reserve Bank of Australia Becomes Inaugural Member of New, International Central Bank Network for Indigenous Inclusion

15 days ago

Joint statement from Te Pūtea Matua (Reserve Bank of New Zealand), the Bank of Canada and
the Reserve Bank of Australia.
Along with Indigenous partners, Te Pūtea Matua (Reserve Bank of New Zealand), the Bank of Canada
and the Reserve Bank of Australia have formed a voluntary network to foster ongoing dialogue and raise
awareness of Indigenous economic and financial issues.
The Central Bank Network for Indigenous Inclusion, established 1 January 2021, aims to share
knowledge and best practices, promote engagement with Indigenous Peoples, and foster greater
understanding and education about Indigenous economic issues and histories.
The network will focus on:
Conducting research for and with Indigenous peoples on economic issues, including the

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Statement by Philip Lowe, Governor: Monetary Policy Decision

April 6, 2021

At its meeting today, the Board decided to maintain the current policy settings, including the targets
of 10 basis points for the cash rate and the yield on the 3-year Australian Government bond, as
well as the parameters of the Term Funding Facility and the government bond purchase program.
The rollout of vaccines is supporting the recovery of the global economy, although the recovery is
uneven. While there are still considerable uncertainties regarding the outlook, the central case has
improved. Global trade has picked up and commodity prices are mostly higher than at the start of the
year. Inflation remains low and below central bank targets.
Sovereign bond yields have increased over recent months due to the

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Statement by Philip Lowe, Governor: Monetary Policy Decision

March 2, 2021

At its meeting today, the Board decided to maintain the current policy settings, including the targets
of 10 basis points for the cash rate and the yield on the 3-year Australian Government bond, as
well as the parameters of the Term Funding Facility and the government bond purchase program.
The outlook for the global economy has improved over recent months due to the ongoing rollout of
vaccines. While the path ahead is likely to remain bumpy and uneven, there are better prospects for a
sustained recovery than there were a few months ago. Global trade has picked up and commodity prices
have increased over recent months. Even so, the recovery remains dependent on the health situation and
on significant fiscal and

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Payments System Board Update: February 2021 Meeting

February 19, 2021

At its meeting today, the Payments System Board discussed a number of issues, including:
The Bank’s Review of Retail Payments Regulation. The Board discussed some recent industry
developments that are relevant to the Review, particularly relating to dual-network debit cards,
least-cost routing, and scheme fees. The staff are continuing to gather information and consulting with
stakeholders. It is expected that the Board will agree on draft conclusions for the Review at its May
meeting, for publication soon afterwards.
Cyber risks to the Australian payments system. Members were briefed on the work being undertaken by
the Bank (together with other CFR agencies) to oversee the management of cyber security risks in the
financial sector. They

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Statement by Philip Lowe, Governor: Monetary Policy Decision

February 2, 2021

At its meeting today, the Board decided to maintain the targets of 10 basis points for the cash
rate and the yield on the 3-year Australian Government bond, as well as the parameters of the Term
Funding Facility. It also decided to purchase an additional $100 billion of bonds issued by the
Australian Government and states and territories when the current bond purchase program is completed in
mid April. These additional purchases will be at the current rate of $5 billion a week.
The outlook for the global economy has improved over recent months due to the development of vaccines.
While the path ahead is likely to remain bumpy and uneven, there are better prospects for a sustained
recovery than there were a few months ago. That recovery, however, remains

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Appointment of Assistant Governor, Business Services

December 10, 2020

The Governor, Philip Lowe, is pleased to announce the appointment of Michelle McPhee to the position of
Assistant Governor (Business Services) at the Reserve Bank of Australia. The Bank considered a
competitive field of internal and external candidates for the role, which will become vacant on the
retirement of Lindsay Boulton in February 2021.

Ms McPhee is currently the Head of Banking at the Reserve Bank of Australia, a role she has held for
the last four years. She spent six years as the Head of Risk and Compliance and, prior to that, held a
number of senior management positions at the Bank primarily in financial market operations. She is
currently a non-executive director of the Australian Payments Network, deputy chair of

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Statement by Philip Lowe, Governor: Monetary Policy Decision

December 1, 2020

At its meeting today, the Board decided to maintain the current policy settings, including the targets
of 10 basis points for the cash rate and the yield on 3-year Australian Government bonds, as well
as the parameters of the Term Funding Facility and the government bond purchase program.
Globally, the news has been mixed recently. On the one hand, infection rates have risen sharply in
Europe and the United States and the recoveries in these economies have lost momentum. On the other
hand, there has been positive news on the vaccine front, which should support the recovery of the global
economy. The recovery is also dependent on ongoing support from both fiscal and monetary policy. Hours
worked in most countries remain noticeably below

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South Pacific Central Bank Governors Committed to Cost Effective Remittances

November 20, 2020

At the South Pacific Central Bank Governors’ Meeting on 17–18 November 2020, the South
Pacific Governors[1] agreed that access to cost-effective remittances remains a high priority focus for the
region.
A key focus has been their collective effort to develop a regional ‘Know Your Customer’
(KYC)[2] facility. The central banks, with support from the International Monetary Fund and other
international agencies, have successfully completed an initial phase of work on a KYC facility for the
South Pacific region.
Simeon Malachi Athy, Governor of the Reserve Bank of Vanuatu and host of the Meeting, said, ‘The
intention of the facility is to improve customer due diligence processes and Anti-Money Laundering /
Countering Financing of Terrorism (AML/CFT)

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Committed Liquidity Facility

November 20, 2020

Following a review, the Reserve Bank has assessed that Authorised Deposit-taking Institutions (ADIs)
using the Committed Liquidity Facility (CLF) can increase their reasonable holdings of high-quality
liquid assets (HQLA) from 26 to 27 per cent of the stock of HQLA securities by the end of
2020, and to 30 per cent of the stock of HQLA securities by the end of 2021. This assessment
reflects the increase in issuance of HQLA securities in 2020 and in prospect for 2021.[1]
As previously announced following the 2019 review of the
CLF, on 1 January 2021 the CLF fee will increase from 17 to 20 basis points per annum on the size of the
commitment to each ADI. The fee is set so that ADIs face similar financial
incentives to meet their liquidity

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Statement by Philip Lowe, Governor: Monetary Policy Decision

November 3, 2020

At its meeting today, the Board decided on a package of further measures to support job creation and
the recovery of the Australian economy from the pandemic. With Australia facing a period of high
unemployment, the Reserve Bank is committed to doing what it can to support the creation of jobs.
Encouragingly, the recent economic data have been a bit better than expected and the near-term outlook
is better than it was three months ago. Even so, the recovery is still expected to be bumpy and drawn
out and the outlook remains dependent on successful containment of the virus.
The elements of today’s package are as follows:
a reduction in the cash rate target to 0.1 per cent
a reduction in the target for the yield on the 3-year Australian Government

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Reserve Bank partners with Commonwealth Bank, National Australia Bank, Perpetual and ConsenSys Software on Wholesale Central Bank Digital Currency Research Project

November 1, 2020

The Reserve Bank today announced that it is partnering with Commonwealth Bank, National Australia Bank,
Perpetual and ConsenSys Software, a blockchain technology company, on a collaborative project to explore
the potential use and implications of a wholesale form of central bank digital currency (CBDC) using
distributed ledger technology (DLT). This is part of ongoing research at the Reserve Bank on wholesale
CBDC.
The project will involve the development of a proof-of-concept (POC) for the issuance of a tokenised
form of CBDC that can be used by wholesale market participants for the funding, settlement and repayment
of a tokenised syndicated loan on an Ethereum-based DLT platform. The POC will be used to explore the
implications of ‘atomic’

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Next Generation of Banknotes: $100 Enters General Circulation

October 28, 2020

The new $100 banknote enters general circulation today. It is the final denomination
to be
redesigned as part of the Reserve Bank’s Next Generation Banknote Program.

Governor Philip Lowe said, ‘The release of the new $100 marks the completion
of the
decade-long program to upgrade the security of our banknotes. As a result, Australia
continues to have
some of the best and most secure banknotes in the world. We also continue to celebrate
the outstanding
contributions of two well-known Australians, Sir John Monash and Dame Nellie Melba, on
the new
$100.’

Sir John Monash was an engineer, soldier and civic leader recognised for his influence in
the

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Regulators urge Australian institutions to adhere to the ISDA IBOR Fallbacks Protocol and Supplement

October 13, 2020

Regulators and industry are taking further steps to transition away from LIBOR, which is expected to
cease after the end of 2021. In particular, on Friday 9 October 2020 the International Swaps and
Derivatives Association (ISDA) announced that it will launch the 2020 IBOR Fallbacks Protocol and
associated Supplement to the 2006 ISDA Definitions on 23 October 2020. These are needed to
implement robust fall-back provisions for derivative contracts referencing key interbank offered rates
(IBORs), including the London Interbank Offered Rate (LIBOR). The protocol and supplement are informed
by extensive consultation with industry, including in Australia.

While the regulators welcome the

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Statement by Philip Lowe, Governor: Monetary Policy Decision

October 6, 2020

At its meeting today, the Board decided to maintain the current policy settings, including the targets
for the cash rate, the yield on 3-year Australian Government bonds, and the parameters for the expanded
Term Funding Facility.
The global economy is gradually recovering after a severe contraction due to the pandemic. However, the
recovery is uneven and its continuation is dependent on containment of the virus. While infection rates
have declined in some countries, they have increased in others. The recovery is most advanced in China,
where conditions have improved substantially over recent months. Globally, inflation remains very low
and below central bank targets.
Financial conditions remain accommodative around the world and supportive of

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ASIC and RBA announce expectations for CHESS replacement

October 1, 2020

ASIC and the Reserve Bank of Australia (RBA) (the regulators) have outlined their
expectations of ASX as it replaces the Clearing House Electronic Sub-register System
(CHESS). This follows the release today of the RBA’s 2020 Assessment of ASX
Clearing and Settlement Facilities.

The regulators expect ASX to replace CHESS as soon as this can be safely achieved by ASX
and users of CHESS. CHESS is a critical clearing and settlement (CS) system for the
Australian cash equity market. It contributes to investor confidence, the reduction of
systemic risk, and the performance and stability of the Australian financial system. The
importance of replacing CHESS in a safe and timely manner was

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Assessment of ASX Clearing and Settlement Facilities – October 2020

October 1, 2020

The Reserve Bank today released the October
2020 Assessment of the ASX Clearing and
Settlement Facilities. The Assessment concludes that ASX’s clearing and settlement (CS)
facilities ‘observed’ or ‘broadly observed’ all relevant requirements under the Reserve
Bank’s Financial Stability Standards (FSS) as at 30 June 2020, with the exception of the
standard relating to margin, which was rated as ‘partly observed’ in ASX Clear
(Futures), and the standard relating to operational risk, which was rated as ‘partly
observed’ in ASX Clear and ASX Settlement.

The Reserve Bank is responsible for the supervision of Australian-licensed CS facilities
focusing on the reduction of systemic

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Next Generation of Banknotes: Circulation Date for the New $100 Banknote

September 30, 2020

The Reserve Bank today announced the new $100 banknote will be released into general
circulation
on 29 October 2020. Existing $100 banknotes retain legal tender status and can
continue to be
used.

The new banknotes have been in production since mid-2019 and will soon be distributed
ahead of their
release into general circulation. With more than 400 million $100 banknotes in
circulation,
the release is a big logistical exercise. As with any new banknote it will take time for
them to be
widely available.

The new $100 banknote celebrates the contributions of two outstanding Australians,
Sir John Monash
and Dame Nellie Melba. Sir John Monash was

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Statement by Philip Lowe, Governor: Monetary Policy Decision

September 1, 2020

At its meeting today, the Board decided to maintain the targets for the cash rate and the yield on
3-year Australian Government bonds of 25 basis points. It also decided to increase the size of the
Term Funding Facility and make the facility available for longer.
Under the expanded Term Funding Facility, authorised deposit-taking institutions (ADIs) will have
access to additional funding, equivalent to 2 per cent of their outstanding credit, at a fixed
rate of 25 basis points for three years. ADIs will be able to draw on this extra funding up until
the end of June 2021. This extension will ensure that all ADIs continue to have access to the Term
Funding Facility after the end of September, when the window for drawings under the initial allowance

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Payments System Board Update: August 2020 Meeting

August 21, 2020

At its meeting today, the Payments System Board discussed a number of issues, including:
The impact of the COVID-19 pandemic on the Australian payments system. Payment system operators
and retail payment service providers have continued to cope well with the operational challenges posed
by the pandemic. Financial market infrastructures have also continued to perform well in recent
months.
The assessment of the ASX clearing and settlement facilities against the Bank’s Financial
Stability Standards. The Board approved the Bank’s 2020 assessment, which will be published after
it has been provided to the Treasurer and the Australian Securities and Investments Commission.
The Review of Retail Payments Regulation. While the Review remains on

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Statement by Philip Lowe, Governor: Monetary Policy Decision

August 4, 2020

At its meeting today, the Board decided to maintain the current policy settings, including the targets
for the cash rate and the yield on 3-year Australian Government bonds of 25 basis points.
The global economy is experiencing a severe contraction as countries seek to contain the coronavirus.
Even though the worst of this contraction has now passed, the outlook remains highly uncertain. The
recovery is expected to be only gradual and its shape is dependent on containment of the virus. While
infection rates have declined in some countries, they are still very high and rising in others.
International trade remains weak, although there has been a strong recovery in industrial activity in
China over recent months.
Globally, conditions in financial

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Statement by Philip Lowe, Governor: Monetary Policy Decision

July 7, 2020

At its meeting today, the Board decided to maintain the current policy settings, including the targets
for the cash rate and the yield on 3-year Australian Government bonds of 25 basis points.
The global economy has experienced a severe downturn as countries seek to contain the coronavirus. Many
people have lost their jobs and there has been a sharp rise in unemployment. Leading indicators have
generally picked up recently, suggesting the worst of the global economic contraction has now passed.
Despite this, the outlook remains uncertain and the recovery is expected to be bumpy and will depend
upon containment of the coronavirus. Over the past month, infection rates have declined in many
countries, but they are still very high and rising in others.

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Assessment of the Reserve Bank Information and Transfer System

June 12, 2020

The Reserve Bank today released the 2020
Assessment of the Reserve Bank Information and Transfer System
(RITS) against the Principles for Financial Market Infrastructures (PFMI). The Assessment concludes that
RITS ‘observed’ all relevant Principles as at 31 March 2020, other than Operational
Risk, which was rated as ‘broadly observed’.
RITS is Australia’s high-value payments system, which is used by banks and other approved
institutions to settle their payment obligations on a real-time gross settlement basis. The
Assessment was independently prepared by the Bank’s Payments Policy Department and endorsed by the
Payments System Board.
The Assessment discusses the Bank’s ongoing initiatives to support the

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Statement by Philip Lowe, Governor: Monetary Policy Decision

June 2, 2020

At its meeting today, the Board decided to maintain the current policy settings, including the targets
for the cash rate and the yield on 3-year Australian Government bonds of 25 basis points.
The global economy is experiencing a severe downturn as countries seek to contain the coronavirus. Many
people have lost their jobs and there has been a sharp rise in unemployment. Over the past month,
infection rates have declined in many countries and there has been some easing of restrictions on
activity. If this continues, a recovery in the global economy will get under way, supported by both the
large fiscal packages and the significant easing in monetary policies.
Globally, conditions in financial markets have continued to improve, although conditions in some

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Payments System Board Update: May 2020 Meeting

May 22, 2020

At its meeting today, the Payments System Board discussed a number of issues, including:
The implications of the COVID-19 pandemic for risk management by financial market
infrastructures (FMIs). Members considered that FMIs in Australia had generally performed well in light
of the operational and financial risk management challenges presented by the pandemic. The lessons
learned from this experience will be discussed in the Bank’s 2020 assessments of FMIs.
The impact of the COVID-19 pandemic on the retail payments system. Members considered that
retail payments providers have, to date, coped well with the altered operational arrangements and other
changes induced by the pandemic. The Board will continue to monitor changes in payment behaviour

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Statement by Philip Lowe, Governor: Monetary Policy Decision

May 5, 2020

At its meeting today, the Board decided to maintain the current policy settings, including the targets
for the cash rate and the yield on 3-year Australian Government bonds of 25 basis points.
The global economy is experiencing a severe downturn as countries seek to contain the coronavirus. Many
people have lost their jobs and a sharp rise in unemployment is occurring. At the same time, the
containment measures have reduced infection rates in a number of countries. If this continues, a
recovery in the global economy will start later this year, supported by both the large fiscal packages
and the significant easing in monetary policies.
Globally, financial markets are working more effectively than they were a month ago, although
conditions have

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Regulators Release Feedback on Financial Institutions’ Preparation for LIBOR Transition

April 8, 2020

ASIC has released feedback on responses to the ‘Dear CEO’ letter from selected major
Australian financial institutions, detailing their preparation for the end of London
Interbank Offered Rate (LIBOR) – an initiative supported by the Australian
Prudential Regulation Authority (APRA), and the Reserve Bank of Australia (RBA).

The feedback highlights the need for all institutions to plan for LIBOR transition,
the aspects to consider in transition and the importance of addressing the related
issues early. To ensure a smooth transition, it is crucial that institutions in
Australia are well-prepared.

The regulators encourage all financial and

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Statement by Philip Lowe, Governor: Monetary Policy Decision

April 7, 2020

At its meeting today, the Board reaffirmed the targets for the cash rate and the yield on 3-year
Australian government bonds of 25 basis points, as well as the other elements of the package
announced on 19 March 2020.
The coronavirus remains first and foremost a very major public health issue, but it is also having very
significant effects on economies and financial systems around the world. Many countries are expected to
experience large economic contractions as a consequence of the public health response. Large increases
in unemployment are also expected. Once the virus is contained, a recovery in the global economy is
expected, with the recovery supported by both the large fiscal packages and the significant easing in
monetary policy that

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Review of Retail Payments Regulation – Postponement

March 25, 2020

In light of the current extraordinary circumstances associated with the impact of COVID-19, the
Reserve Bank is putting on hold the Review of Retail Payments Regulation that was announced on
29 November 2019.
Whereas the Bank had previously expected that the Review would be completed by late 2020,
we now expect that it will be completed in 2021. This decision is intended to reduce the demands on
industry stakeholders at a time when they are focused on dealing with the impact of COVID-19. Bank staff
will continue to do background work on the Review as resources permit and remain available to speak with
stakeholders as required.

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