If you follow The Tax Chic on Facebook, you’ve probably seen me reference the Reserve Bank of Australia…the RBA…(if you don’t follow The Tax Chic on Facebook, please click here to like!)

But exactly who are the RBA?

According to their website: “The Reserve Bank of Australia (RBA) is Australia’s central bank and derives its functions and powers from the Reserve Bank Act 1959. Its duty is to contribute to the stability of the currency, full employment, and the economic prosperity and welfare of the Australian people. It does this by setting the cash rate to meet an agreed medium-term inflation target, working to maintain a strong financial system and efficient payments system, and issuing the nation’s banknotes. The RBA provides certain banking services as required to the Australian Government and its agencies, and to a number of overseas central banks and official institutions. Additionally, it manages Australia’s gold and foreign exchange reserves.”

The one function the RBA performs, that most businesses and individuals are interested in, is the setting of interest rates.

On the first Tuesday of each month, the Board of the RBA meet to determine policy, and at 2.30pm AEST, an announcement is made regarding the cash rate.

Any changes to the cash rate means an “almost certain” change in interest rates by banks.

You can find out about any changes to the cash rate by keeping an eye on Facebook…I’ll happily keep you updated!

Regards