Roles and Responsibilities
It is currently governed by the Reserve Bank Act 1959, which was approved by Parliament. The Reserve Bank Board's duty stated in the Act, within its outlined boundaries, is to ensure that the Bank's monetary and banking policy is used to help the Australian population. This should be accomplished through consultation with the Government and so in the Reserve Bank Board's opinion that its powers are used to help with:
| “ | (a) the stability of the currency of Australia (b) the maintenance of full employment in Australia; and |
” |
In practice the Reserve Bank concentrates on the first objective, that is to control inflation through monetary policy. The current objective is a policy of inflation targeting aimed at maintaining the annual inflation rate at between "2-3 per cent, on average, over the cycle". This target was first set in 1993 by the then Reserve Bank Governor Bernie Fraser and was then formalised in 1996 by the then Treasurer Peter Costello and incoming Reserve Bank Governor Ian Mcfarlane.
The Reserve Bank gives banking and registry services to agencies of the Government, to other central banks, and other official institutions. The assets of the Bank include the gold and foreign exchange reserves of Australia, which is estimated to have a net worth of A$101 billion.
Nearly 94% of the RBA's employees work at its headquarters in Sydney, New South Wales and at the Business Resumption Site. The remainder of the total 926 staff work in Adelaide, South Australia; Brisbane, Queensland; Canberra, Australian Capital Territory; Melbourne, Victoria; Perth, Western Australia; London, England, United Kingdom; and New York. A wholly owned subsidiary of the bank is Note Printing Australia, which employs 257 other workers, and which manufactures the Australian dollar and other securities, for markets both in and outside of Australia.
The Payments System Board fills the role of deciding on the Bank's payments system policy and the Reserve Bank Board is responsible for all other monetary and banking policies of the bank. Conflicts between the two Boards don't occur often and when they do, they are resolved by the Governor.
Read more about this topic: Reserve Bank Of Australia
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