Differences in economic conditions between capital cities and regional areas have widened since the early 2000s. Some regional areas, particularly outer regional and remote areas, have faced considerable structural changes and have taken longer than other regions to adapt to these developments. Most regional labour markets appear to have adjusted quite well to the differences in regional economic conditions, though the adjustment process may have been more difficult for some regions.

A key feature of Australia’s financial system is that nearly all liabilities are denominated in, or hedged into, Australian dollars. A pre-condition for this state of affairs is that investors are willing to hold Australian dollar-denominated assets. Investor confidence in Australian dollar assets is supported by Australia’s sound institutional framework, history of positive macroeconomic outcomes, and well-functioning financial system. Australia’s journey to funding in its own currency spanned nearly a century and involved various costs. Today, these funding arrangements confer substantial benefits to the Australian economy, including by reinforcing the same positive economic, financial and institutional outcomes that made Australian dollar funding possible in the first place.

Renewable energy investment has increased significantly in Australia over recent years, contributing to a continuing shift in the energy generation mix away from traditional fossil fuel sources. Current estimates suggest that investment in renewable energy has moderated from its recent peak and is likely to decline further over the next year or two. In the longer term, the transition towards renewable energy is expected to continue. Significant coal-fired generation capacity will be retired over coming decades and is likely to be replaced mainly by distributed energy resources and large-scale renewable energy generators, supported by energy storage.

Banks’ funding costs declined over 2019, driven by reductions in the cash rate. Lenders passed most of the decrease in funding costs through to interest rates on mortgages and business loans. Funding costs and lending rates are at historical lows.

The Council of Financial Regulators (the Council) has been meeting frequently in recent weeks and will continue to do so for the foreseeable future. It held its regular quarterly meeting on Friday 20 March. The Australian Treasurer and the Australian Office of Financial Management (AOFM) attended for part of the meeting.

The main issue on the Council's agenda was the coordinated response to the coronavirus (COVID-19). COVID-19 poses a major challenge to the Australian economy. To support the economy, it is crucial that over the coming months the financial system remains stable and resilient and that markets are open and orderly. Council agencies and the Government have been working hard to achieve this and will continue to do so. The Council discussed market developments, operational readiness of institutions, measures taken both domestically and internationally, possible pathways and contingencies. The Council also...

Data on merchants’ costs of accepting card payments show large differences in payment costs across both merchants and card systems. Smaller businesses typically face higher payment costs than larger businesses, credit card transactions are generally more expensive than debit cards, and debit card transactions tend to be more costly for most merchants when processed through the international card schemes compared with the domestic debit scheme. Overall costs of accepting card payments have nevertheless declined over the past decade, following the implementation of various reforms by the Bank.

The Reserve Bank’s 2019 Consumer Payments Survey has provided further evidence that Australian consumers are increasingly preferring to use electronic payment methods. Many people now tap their cards, or sometimes phones, for small purchases rather than paying in cash. Consumers also have an increasing range of options available for making everyday payments. Despite this, cash still accounts for a significant share of lower-value payments and a material proportion of the population continues to make many of their payments in cash.

It has been two years since the public launch of the New Payments Platform (NPP) and the Fast Settlement Service (FSS). Together, the NPP and FSS now enable customers of more than 90 financial institutions to make fast payments 24 hours a day, every day of the week (‘24/7’). Customers can send detailed information with a payment and nominate the payment recipient in a simple way. While the rollout of the NPP has been gradual, usage grew rapidly over the second half of 2019 and compares favourably with other successful fast payment systems introduced overseas. With a range of new functionality under development, the NPP and FSS are well placed to deliver innovative new payment services to support the Australian economy into the future.

Starting your career at Australia's central bank will give you the opportunity to make a difference to the lives of all Australians. All of our employees, including graduates, share the common goal of working together to promote the economic prosperity and welfare of the people of Australia.

Our two-year Graduate Development Program offers comprehensive training, coaching and development in a supportive environment. It allows you to undertake meaningful work from day one and to apply the knowledge acquired at university in challenging real-world situations.

The artwork is the designer's interpretation of various architectural photographs of the Forecourt Mosaic. The Forecourt Mosaic is based on a Central Desert dot-style painting by Michael Nelson Jagamara titled ‘Possum and Wallaby Dreaming’.

Starting your career at Australia's central bank will give you the opportunity to make a difference to the lives of all Australians. All of our employees, including graduates, share the common goal of working together to promote the economic prosperity and welfare of the people of Australia.

Our two-year Graduate Development Program offers comprehensive training, coaching and development in a supportive environment. It allows you to undertake meaningful work from day one and to apply the knowledge acquired at university in challenging real-world situations.

Philip Lowe (Governor and Chair), Guy Debelle (Deputy Governor), Mark Barnaba AM, Wendy Craik AM, Ian Harper, Steven Kennedy PSM, Carol Schwartz AO, Catherine Tanna

Members granted leave of absence to Allan Moss AO in terms of section 18A of the Reserve Bank Act 1959.

Starting your career at Australia's central bank will give you the opportunity to make a difference to the lives of all Australians. All of our employees, including graduates, share the common goal of working together to promote the economic prosperity and welfare of the people of Australia.

Our two-year Graduate Development Program offers comprehensive training, coaching and development in a supportive environment. It allows you to undertake meaningful work from day one and to apply the knowledge acquired at university in challenging real-world situations.

Utkarsh and Jessie have completed their first 12 months in our grad program and they explain why those chose to work here and what their experience has been like to date. Find out more about our Graduate Program - https://bit.ly/31GH8eX. Applications open on 12 February 2020 and close on 11 March 2020.Follow our other social media channels to receive updates:Facebook -...

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 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.

Good morning Chair and members of the Committee.

These hearings are a central part of the accountability process for the Reserve Bank of Australia. As usual, my colleagues and I will do our best to answer your questions and to explain how we are discharging our important responsibilities on behalf of the Australian community.

Later this morning we will be releasing a full set of updated forecasts in our quarterly Statement on Monetary Policy. Ahead of that I would like to highlight the main numbers and some of the factors that are influencing the outlook. I will then turn to monetary policy and finish with some remarks about the RBA's payments system responsibilities.

When we met six months ago, I said that there were signs that the Australian economy may have reached a gentle turning point. The data that we have received since then are consistent with this. Our central forecast is that economic growth in Australia will pick up from an average rate...

Starting your career at Australia’s central bank will give you the opportunity to make a difference to the lives of all Australians. All of our employees, including graduates, share the common goal of working together to promote the economic prosperity and welfare of the people of Australia.

Our two-year Graduate Development Program offers comprehensive training, coaching and development in a supportive environment. It allows you to undertake meaningful work from day one and to apply the knowledge acquired at university in challenging real-world situations.