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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

Survey of Foreign Exchange and Derivative Markets

4 days ago

In April 2019, the Reserve Bank conducted a survey of activity in foreign exchange and over-the-counter
(OTC) interest rate derivatives markets in Australia. This was part of a global survey of 53 countries,
coordinated by the Bank for International Settlements (BIS). Similar surveys have been conducted every
three years since 1986.

Globally, the Australian dollar remains the fifth most traded currency, and its share of turnover was
largely unchanged at around 7 per cent. The AUD/USD remains the fourth most traded currency
pair, accounting for a similar share of global turnover as in the previous survey in April 2016.

Activity in Australia’s foreign exchange market has

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Consultation on ISO 20022 Migration for the Australian Payments System – Responses and Options Paper

9 days ago

The Reserve Bank of Australia (RBA) and the Australian Payments Council (APC) today released
the
ISO 20022 Migration for the Australian Payments System – Responses and
Options Paper.
This follows the
Issues Paper published earlier this year, which sought views on the
migration of messaging used in some parts of the Australian payments system to the
International Organization for Standardization (ISO) 20022 payments messaging standard.

The RBA and APC received
31 submissions to the Issues Paper, with respondents
representing a diverse range of backgrounds including Exchange Settlement Account (ESA)
holders, industry bodies, corporate organisations,

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Statement By Philip Lowe, Governor: Monetary Policy Decision

18 days ago

At its meeting today, the Board decided to leave the cash rate unchanged at
1.00 per cent.
The outlook for the global economy remains reasonable, although the risks are tilted to the downside.
The trade and technology disputes are affecting international trade flows and investment as businesses
scale back spending plans due to the increased uncertainty. At the same time, in most advanced
economies, unemployment rates are low and wages growth has picked up, although inflation remains low. In
China, the authorities have taken further steps to support the economy, while continuing to address
risks in the financial system.
Global financial conditions remain accommodative. The persistent downside risks to the global economy
combined with

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Payments System Board Update: August 2019 Meeting

August 16, 2019

At its meeting today, the Payments System Board discussed a number of issues, including:
The New Payments Platform (NPP). The Board discussed progress by financial institutions in rolling out
NPP payments to their customers. Members remain disappointed with the progress made by some major banks
and expect their commitments to be met.
Members also discussed the response by NPP Australia (NPPA) to the
conclusions of the consultation recently conducted by the Bank and the ACCC on NPP functionality and
access. Members welcomed NPPA’s confirmation that it would publish a roadmap for delivering new
functionality and that it had already approved a compliance framework that would allow it to mandate
certain core capability requirements for NPP

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Next Generation of Banknotes: Circulation Date for the New $20 Banknote

August 9, 2019

Next Generation of Banknotes: Circulation Date for the New $20 Banknote
Governor Philip Lowe today announced the new $20 banknote will be released into general
circulation on
9 October 2019. While they will soon be shipped around the country in time for release,
as with any new
banknote it will take time for them to be widely available. Existing $20 banknotes can
continue to be
used, as all previously issued banknotes remain legal tender.

The Governor noted in his statement to the House of Representatives Standing Committee on
Economics
that the release is a big logistical exercise, with more than 170 million $20 banknotes
in circulation.
The Reserve Bank has been

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Statement by Philip Lowe, Governor: Monetary Policy Decision

August 6, 2019

At its meeting today, the Board decided to leave the cash rate unchanged at 1.00 per cent.
The outlook for the global economy remains reasonable. However, the increased uncertainty generated by
the trade and technology disputes is affecting investment and means that the risks to the global economy
remain tilted to the downside. In most advanced economies, unemployment rates are low
and wages growth has picked up, although inflation remains low. The slowdown in global trade has
contributed to slower growth in Asia. In China, the authorities have taken steps to support the economy,
while continuing to address risks in the financial system.
Global financial conditions remain accommodative. The persistent downside risks to the global economy
combined with

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Changes to the Exchange Settlement Account Policy

July 25, 2019

The Reserve Bank has updated its Exchange Settlement
Account (ESA) Policy after determining that a number of changes were appropriate to provide more
information about the eligibility requirements and application process, including the various risk
management criteria applicants would be expected to meet.
The changes seek to ensure that the ESA Policy continues to promote competition in the market for
payment services by providing access to ESAs for non-ADI entities whose applications are successful,
while also ensuring that operational, liquidity and other risks are appropriately managed.
Some of the changes have been motivated by developments in technology that have allowed a wider range
of non-ADI entities (including ‘fintechs’) to compete directly

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Statement By Philip Lowe, Governor: Monetary Policy Decision

July 2, 2019

At its meeting today, the Board decided to lower the cash rate by 25 basis points to
1.00 per cent. This follows a similar reduction at the Board’s June meeting. This
easing of monetary policy will support employment growth and provide greater confidence that inflation
will be consistent with the medium-term target.
The outlook for the global economy remains reasonable. However, the uncertainty generated by the trade
and technology disputes is affecting investment and means that the risks to the global economy are
tilted to the downside. In most advanced economies, inflation remains subdued, unemployment rates are
low and wages growth has picked up. The slowdown in global trade has contributed to slower growth in
Asia. In China, the authorities have

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New Payments Platform: Conclusions Paper

June 13, 2019

The Reserve Bank today released a report on the functionality of, and access to, the
New Payments Platform. The report presents 13 recommendations from the public
consultation that the Bank has undertaken with input and assistance from the
Australian Competition and Consumer Commission (ACCC). The recommendations, if fully
implemented by NPP Australia (NPPA) and its participants, should address the issues
and policy concerns identified during the consultation.

The report’s overall conclusion is that the NPP is enabling payments functionality
that largely addresses the gaps identified in the Reserve Bank’s 2010–2012 Strategic
Review of Innovation. However, it highlights

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Reserve Bank Adjusts the Committed Liquidity Facility

June 6, 2019

Following a review, the Reserve Bank has assessed that Authorised Deposit-taking Institutions (ADIs)
using the Committed Liquidity Facility (CLF) can increase their holdings of high quality liquid assets
(HQLA) from 25 to 30 per cent of the stock of HQLA securities. This change is possible because
the volume of HQLA securities has risen over recent years. To minimise the effect on market functioning,
the increase will occur at a pace of 1 percentage point per year until 2024, commencing with an
increase to 26 per cent in 2020.
The Reserve Bank has also assessed that the CLF fee should be increased from 15 to 20 basis points
per annum on the size of the commitment to each ADI. The fee is set so ADIs face similar financial
incentives to meet their

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Statement By Philip Lowe, Governor: Monetary Policy Decision

June 4, 2019

At its meeting today, the Board decided to lower the cash rate by 25 basis points to
1.25 per cent. The Board took this decision to support employment growth and provide greater
confidence that inflation will be consistent with the medium-term target.
The outlook for the global economy remains reasonable, although the downside risks stemming from the
trade disputes have increased. Growth in international trade remains weak and the increased uncertainty
is affecting investment intentions in a number of countries. In China, the authorities have taken steps
to support the economy, while addressing risks in the financial system. In most advanced economies,
inflation remains subdued, unemployment rates are low and wages

Read More »

The Operation of the Interchange Standards: Conclusions and Variation of Standards

May 31, 2019

After consultation with industry, the Reserve Bank has decided to implement the proposals it put
forward in February to vary Standards No 1 and No 2
of 2016 to improve the clarity and operation of the net compensation requirements of the Standards.
The Bank will also implement its proposed transitional arrangement to the varied Standards.
The Standards limit interchange fees in designated card payment systems. The net compensation
requirements were introduced in 2016 and are designed to prevent circumvention of the limits on
interchange fees by arrangements involving non-interchange payments or other incentives being provided
by schemes to issuers.
The variations that will give effect to the proposals have been modified relative to those set out in

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Payments System Board Update: May 2019 Meeting

May 24, 2019

At its meeting on Friday 24 May 2019, the Payments System Board discussed a number of
issues, including:

Least-cost routing of debit card transactions. The Board has been supportive of dual-network debit
cards because they provide convenience and choice to both consumers and merchants and can help hold down
payment costs. Reports from the Productivity Commission, the Black Economy Taskforce and the House of
Representatives Standing Committee on Economics have all called for the industry to provide least-cost
(or merchant choice) routing for contactless transactions to their merchant customers. A number of
financial institutions, including two of the major banks, are now making this functionality available.

Read More »

Regulators Urge Financial Institutions to Plan for LIBOR Transition

May 9, 2019

The Australian Securities and Investments Commission (ASIC) has written to the CEOs
of several major Australian financial institutions regarding their preparations for
the end of LIBOR. This initiative is strongly supported by the Australian Prudential
Regulation Authority (APRA) and the Reserve Bank of Australia (RBA).

LIBOR (London Interbank Offered Rate) is deeply embedded in financial markets
globally and is used by many Australian financial institutions in their contracts
and business processes. The UK Financial Conduct Authority (FCA) has stated that it
will no longer use its powers to sustain LIBOR beyond 2021.

The purpose of the

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Statement by Philip Lowe, Governor: Monetary Policy Decision

May 7, 2019

At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent.

The outlook for the global economy remains reasonable, although the risks are tilted to
the downside. Growth in international trade has declined and investment intentions have
softened in a number of countries. In China, the authorities have taken steps to support
the economy, while addressing risks in the financial system. In most advanced economies,
inflation remains subdued, unemployment rates are low and wages growth has picked up.

Global financial conditions remain accommodative. Long-term bond yields are low,
consistent with the subdued outlook for inflation, and equity markets

Read More »

Financial Markets Foundation for Children Provides Funding for New Chair in Neonatal Paediatrics

April 24, 2019

The Financial Markets Foundation for Children (FMFC) has provided funding for the appointment of a new
Chair in Neonatal Paediatrics with responsibility for rapidly advancing knowledge and practice in the
field of newborn health and improving life outcomes for babies.
As a full Professor of Monash University, the new appointee will be responsible for leadership and
strategic development of neonatal paediatric academic research at the University. The appointee will be
a well-established academic neonatologist from one of the world’s leading research
communities.
Chair of the Financial Markets Foundation, Reserve Bank Governor Philip Lowe, said, ‘On behalf
of the FMFC, we are delighted to provide funding for

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Consultation on ISO 20022 Migration for the Australian Payments System

April 8, 2019

The Reserve Bank and the Australian Payments Council (APC) today issued a
consultation paper
seeking stakeholder views on the migration of messaging used in some parts of the
Australian payments system to the International Organization for Standardization
(ISO) 20022 payments messaging standard.

The Australian payments system comprises a number of payment services, clearing
systems and settlement systems. Some of these services and systems use the Society
for Worldwide Interbank Financial Telecommunication (SWIFT) Message Type (MT) for
messages used in trading, clearing, settlement and payments, including for the
Reserve Bank’s real-time gross settlement system.

Read More »

Pacific central bankers prioritise capital flows and climate change

April 5, 2019

Joint statement from the South Pacific Governor’s Meeting[*]

At a meeting in Auckland yesterday, the Governors of the nine central banks agreed a
vision for the group to ‘collaborate to promote the prosperity and economic wellbeing of
our member nations’.

The governors started a project to explore how to improve access to, and lower the cost
of, capital flows and international payments and settlements within the Pacific region.

The governors also agreed to involve the Network for Greening the Financial System
(NGFS) in an event in November that will look at the impact of climate change on the
Pacific’s financial systems and our response to it. The NGFS is an

Read More »

Statement by Philip Lowe, Governor: Monetary Policy Decision

April 2, 2019

At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent.

The outlook for the global economy remains reasonable, although growth has slowed and
downside risks have increased. Growth in international trade has declined and investment
intentions have softened in a number of countries. In China, the authorities have taken
steps to ease financing conditions, partly in response to slower growth in the economy.
Globally, headline inflation rates have moved lower following the earlier decline in oil
prices, although core inflation has picked up in a number of economies. In most advanced
economies, unemployment rates are low and wages growth has picked up.

Read More »

Bilateral Local Currency Swap Agreement With the Bank of Japan

March 15, 2019

The Reserve Bank of Australia has extended its bilateral local currency swap
agreement with the Bank of Japan for a further three years. The agreement is
designed to enhance the financial stability of the two countries and allows for the
exchange of local currencies between the two central banks of up to AUD 20 billion
or JPY 1.6 trillion. An initial swap agreement between the two central banks had
been signed in 2016.

Read More »

Statement by Philip Lowe, Governor: Monetary Policy Decision

March 5, 2019

At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent.

The global economy grew above trend in 2018, although it slowed in the second half of
the year. The slower pace of growth has continued into 2019. The outlook for the global
economy remains reasonable, although downside risks have increased. The trade tensions
remain a source of uncertainty. In China, the authorities have taken further steps to
ease financing conditions, partly in response to slower growth in the economy. Globally,
headline inflation rates have moved lower following the earlier decline in oil prices,
although core inflation has picked up in a number of economies. In most advanced

Read More »

Consultation on the Operation of the Bank’s Interchange Standards

February 28, 2019

Consultation on the Operation of the Bank’s Interchange Standards
The Reserve Bank today issued a consultation paper seeking stakeholder views on some
proposed
variations to Standards
No
1 and No 2 determined by the Bank in 2016. Both standards relate to the setting
of
interchange fees in designated card schemes and net payments to issuers in those
schemes.

In 2015-16, the Bank conducted a review of its card payments regulation which concluded
with new
standards relating to interchange fees and merchant pricing in designated card schemes.
The
interchange standards introduced new requirements relating to the payment of ‘net
compensation’ to issuers.

Read More »

Payments System Board Update: February 2019 Meeting

February 24, 2019

Number

Date

Note for editors

The February 2019 PSB Meeting was held in the afternoon of 22 February, due to the
Governor’s Parliamentary appearance that morning. The post-meeting media release was
accordingly not published until the morning of the next business day.

Related Information

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Next Generation $20 Banknote Design Reveal

February 21, 2019

The Reserve Bank has today revealed the design of the new $20 banknote, which will be
released into general circulation in October 2019. As with the existing banknote,
the new $20 features portraits of Mary Reibey and Reverend John Flynn.

Governor Philip Lowe said: ‘The new $20 banknote continues to celebrate the
lives of two outstanding Australians. Their stories are told through the images we
have incorporated on the banknote, which provide a rich and diverse narrative about
their life in Australia.’
Mary Reibey arrived in Australia as a convict, but soon broke out of rigidly defined
social norms to earn a reputation as an astute and successful businesswoman running
her shipping and

Read More »

Statement by Philip Lowe, Governor: Monetary Policy Decision

February 5, 2019

At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent.

The global economy grew above trend in 2018, although it slowed in the second half of
the year. Unemployment rates in most advanced economies are low. The outlook for global
growth remains reasonable, although downside risks have increased. The trade tensions
are affecting global trade and some investment decisions. Growth in the Chinese economy
has continued to slow, with the authorities easing policy while continuing to pay close
attention to the risks in the financial sector. Globally, headline inflation rates have
moved lower due to the decline in oil prices, although core inflation has picked up in

Read More »

Statement by Philip Lowe, Governor: Monetary Policy Decision

December 4, 2018

At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent.

The global economic expansion is continuing and unemployment rates in most advanced
economies are low. There are, however, some signs of a slowdown in global trade, partly
stemming from ongoing trade tensions. Growth in China has slowed a little, with the
authorities easing policy while continuing to pay close attention to the risks in the
financial sector. Globally, inflation remains low, although it has increased due to the
earlier lift in oil prices and faster wages growth. A further pick-up in core inflation
is expected given the tight labour markets and, in the United States, the sizeable

Read More »

Samoa Commitment for the Pacific Islands

November 29, 2018

Joint statement from the South Pacific Governor’s Meeting[*]

The Central Bank Governors of the South Pacific region met in Samoa on the occasion of
the 33rd Pacific Central Bank Governors’ meeting. The meeting’s theme was ‘Strengthening
Collaboration’, with the objective of promoting the prosperity and economic welfare of
our member nations. At the conclusion of the meeting the Governors stated:

"We the Pacific Central Bank Governors affirm our intention to leverage information
technology to deepen and enhance the efficiency of our financial systems, so as to best
support economic development and inclusion in our region.

The specific strategic initiative

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Guilty Pleas made by Note Printing Australia and Securency in the Supreme Court of Victoria

November 28, 2018

Following a decision by the Supreme Court of Victoria today, the Reserve Bank of Australia (RBA) is able to
disclose that in late 2011 Note Printing Australia (NPA) and Securency[1]
entered pleas of guilty to charges of conspiracy to bribe foreign officials in
connection with banknote-related business. The offences were committed over the
period from December 1999 to September 2004.

The RBA and the companies were not permitted to disclose these pleas prior to today
due to suppression orders, which have now been lifted. The orders were not sought by
the RBA or the companies.

The boards of NPA and Securency decided to enter guilty pleas at the earliest
possible time rather than

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Payments System Board Update: November 2018 Meeting

November 23, 2018

At its meeting today, the Payments System Board reviewed the strategic priorities for
the Bank’s payments policy work. These include: promoting reliable, secure,
efficient and low-cost electronic payment services; keeping abreast of new
technologies and platforms in payments; putting in place a resolution regime for
financial market infrastructures (FMIs); and ensuring that the framework for
oversight of foreign-headquartered FMIs remains appropriate.

The Board also discussed a number of other issues, including:
The Council of Financial Regulators’ ongoing review of the regulatory
framework for stored-value facilities. The review is aiming to simplify and
clarify the regulatory

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