DEFINITION of 'Reserve Bank of Australia'
The Reserve Bank of Australia is Australia's central bank and its main responsibility is to be involved in Australia's monetary policy. In addition, the Reserve Bank of Australia is also involved in banking and registry services for federal agencies and some international central banks. The Reserve Bank of Australia is tasked with contributing to three objectives: a) The stability of Australia's currency, b) Maintenance of full employment in Australia and c) The economic prosperity of the people of Australia. The bank was established in 1960 and is entirely owned by the Australian government.
BREAKING DOWN 'Reserve Bank of Australia'
The Reserve Bank of Australia was established by Australia's parliament in the Reserve Bank Act of 1959. The act effectively replaced the Commonwealth Bank of Australia, which had been Australia's central bank since 1911. The Reserve Bank of Australia is currently headed by Governor of the Reserve Bank, Glenn Stevens, who assumed office in 2006.