The yield curve for government bonds is an important indicator in financial markets. It helps to determine how actual and expected changes in the policy interest rate (the cash rate in Australia), along with changes in other monetary policy tools, feed through to a broad range of interest rates in the economy. This Explainer has two parts:

Our series of Topical Talks provide opportunities for educators to enhance their understanding of economic concepts and developments in the Australian economy through hearing insights from an economist on a relevant topic. The talks are aimed at a range of educators, from secondary school to the tertiary sector.

Our series of Topical Talks provide opportunities for educators to enhance their understanding of economic concepts and developments in the Australian economy through hearing insights from an economist on a relevant topic. The talks are aimed at a range of educators, from secondary school to the tertiary sector.

The Early 1990s Recession in Australia began in the March quarter of 1991 and lasted for about a year. During the recession unemployment rose above 10 per cent. The recession came in response to the unwinding of the asset price boom in Australia during the 1980s, the international recession of the early 1990s and high interest rates, which were necessary to help reduce Australia's high inflation rate at the time.

The Statement on Monetary Policy sets out the Bank's assessment of current economic conditions, both domestic and international, along with the outlook for Australian inflation and output growth. A number of boxes on topics of special interest are also published. The Statement is issued four times a year.

The Chart Pack summarises macroeconomic and financial market trends in Australia and provides some information about developments for our main trading partners. The graphs in the Chart Pack are updated monthly. For more information about the source data for the Chart Pack graphs, see Data Availability. The Reserve Bank also publishes extensive statistical data on our website.

Browse the left-hand navigation to choose the graph subject category. You can then view or download the graphs individually.

National Cabinet announces moratorium on evictions for residential tenancies, and common SME leasing principles forming a ‘Mandatory Code of Conduct’ during COVID-19. Applies to SMEs with annual turnover up to $50m which are eligible for the Commonwealth JobKeeper program.

The material in this Financial Stability Review was finalised on 8 April 2020 and uses data through to 8 April 2020.

ISSN 1449–3896 (Print) ISSN 1449–5260 (Online)

The Chart Pack summarises macroeconomic and financial market trends in Australia and provides some information about developments for our main trading partners. The graphs in the Chart Pack are updated monthly. For more information about the source data for the Chart Pack graphs, see Data Availability. The Reserve Bank also publishes extensive statistical data on our website.

Browse the left-hand navigation to choose the graph subject category. You can then view or download the graphs individually.

In recent decades, central banks in advanced economies have typically used interest rates as their tool for conducting monetary policy. In response to the global financial crisis (GFC) of 2007–2009 and the deep recession it caused in parts of the world, central banks in many advanced economies lowered their policy interest rates to near-zero levels. As economic growth remained weak, interest rates persisted at near-zero levels and some central banks used ‘unconventional’ monetary policy to stimulate economic activity. (See Explainer: The Global Financial Crisis and the Deputy Governor's speech Lessons and Questions from the GFC for an explanation of the causes and consequences of the GFC.) These unconventional measures have again become prominent as central banks around the world respond to the severe economic consequences of the coronavirus (COVID-19) global pandemic.

This Explainer describes the difference between conventional and unconventional monetary policy. It...

The Chart Pack summarises macroeconomic and financial market trends in Australia and provides some information about developments for our main trading partners. The graphs in the Chart Pack are updated monthly. For more information about the source data for the Chart Pack graphs, see Data Availability. The Reserve Bank also publishes extensive statistical data on our website.

Browse the left-hand navigation to choose the graph subject category. You can then view or download the graphs individually.

Our Summer Intern Program is an excellent opportunity for high-achieving students to get first-hand experience of what it is like to work in Australia's central bank. The Program has been designed to provide work experience and financial support during the final year of study to students who have the potential to be successful graduates at the RBA.

We look for a high level of analytical skills and a genuine interest in working for an institution that makes a difference to the lives of all Australians. Applications are accepted from 3rd year (or equivalent) students majoring in economics, finance, or related areas such as mathematics and statistics who intend to complete honours or similar research based programs.

Initially, we offer successful candidates a paid eight week work placement over the summer. As an intern you will be supported as you undertake project work that culminates in a research paper that is presented to your peers and senior staff.

Our Summer Intern Program is an excellent opportunity for high-achieving students to get first-hand experience of what it is like to work in Australia's central bank. The Program has been designed to provide work experience and financial support during the final year of study to students who have the potential to be successful graduates at the RBA.

We look for a high level of analytical skills and a genuine interest in working for an institution that makes a difference to the lives of all Australians. Applications are accepted from 3rd year (or equivalent) students majoring in economics, finance, or related areas such as mathematics and statistics who intend to complete honours or similar research based programs.

Initially, we offer successful candidates a paid eight week work placement over the summer. As an intern you will be supported as you undertake project work that culminates in a research paper that is presented to your peers and senior staff.

Release date: 1 April 2020

Preliminary estimates for March indicate that the index decreased by 3.7 per cent (on a monthly average basis) in SDR terms, after increasing by 1.0 per cent in February (revised). The base metals, rural and non-rural subindices all decreased in the month. In Australian dollar terms, the index increased by 3.5 per cent in March.

Over the past year, the index has decreased by 10.2 per cent in SDR terms, led by lower coal, LNG, oil and alumina prices. The index has increased by 0.7 per cent in Australian dollar terms.

Consistent with previous releases, preliminary estimates for iron ore, coking coal, thermal coal and LNG export prices are being used for the most recent months, based on market information. Using spot prices for the bulk commodities, the index decreased by 3.5 per cent in March in SDR terms, to be 10.3 per cent lower over the past year.

For further details regarding the construction...

The outbreak of COVID-19 is primarily a public health issue, but it is also having a major impact on the economy and the financial system. As the virus has spread, countries have restricted the movement of people across borders and implemented social distancing measures. The result has been major disruptions to economic activity across the world. This is likely to remain the case for some time yet as efforts continue to contain the virus.

The primary response to the virus is to manage the health of the population, but other arms of policy, including monetary policy, play an important role in reducing the economic and financial disruption resulting from the virus.

At some point, the virus will be contained and the Australian economy will recover. In the interim, a priority for the Reserve Bank is to support jobs, incomes and businesses, so that when the health crisis recedes, the country is well placed to recover strongly.

In a special meeting convened to consider options for monetary policy responses to the economic effects of the novel coronavirus disease (COVID-19), members commenced their discussion with a review of recent developments. The outbreak was noted as first and foremost a public health issue. Many countries were shutting their borders and placing restrictions on businesses and individuals to slow the spread of COVID-19. This was causing very significant disruption to economies around the world.

Financial markets had been very volatile and there had been sharp falls in the prices of risky assets as market participants struggled to price the risks, given their unprecedented nature. Equity prices in the advanced economies, including in Australia, had fallen by around 30 per cent. The falls had been broadly based across sectors, although equity prices in the energy and tourism sectors had fallen particularly sharply. The equity prices of banks had also fallen...

The share of the population in their peak earning and spending years (ages 35–54) has decreased over the past decade, while the share aged 65 and above has increased. Demographic change has tended to reduce aggregate growth in household income and consumption, but by less than what previous patterns of household spending would suggest. This is because older households have earned and consumed more than in the past, and they have become wealthier. By contrast, growth in spending by younger households has been subdued, consistent with their weak income growth. The different earning and spending behaviour of households across different age groups will continue to affect trends in aggregate household consumption and income as the population ages further.