The Reserve Bank of Australia (RBA) is the central bank of Australia and is responsible for implementing monetary policy, regulating the financial system, and promoting the stability of the Australian economy. The RBA was established in 1959 and is headquartered in Sydney.The main functions of the RBA are: -1- Implementing monetary policy: - The RBA sets the official cash rate, which is the interest rate at which banks can borrow and lend overnight funds among themselves. The RBA uses this tool to influence the level of inflation in the economy and to achieve its policy objectives.2- Regulating the financial system: - The RBA is responsible for the prudential supervision of the financial system, including banks, insurers, and other financial institutions. It sets and enforces rules and standards to ensure that the financial system is stable and operates in a way that promotes the public interest.3- Promoting the stability of the Australian economy: - The RBA monitors economic and financial developments in Australia and abroad and provides analysis and advice to the government on matters affecting the stability of the economy.The RBA is independent of the government and operates at arm's length from the political process. It is accountable to the Australian Parliament through the Treasurer.
