Statement by Australian Chancellor of the Exchequer Chalmers on central bank
central bank
A central bank is a financial institution that manages a country’s monetary policy, and often this also involves issuing and/or monitoring currency and regulating the money supply. Central banks also typically act as lenders of last resort to banks in times of financial crisis, and can also supervise and regulate banks and other financial institutions. Examples of central banks include the Federal Reserve in the United States, the European Central Bank, and the Bank of Japan
A central bank is a financial institution that manages a country’s monetary policy, and often this also involves issuing and/or monitoring currency and regulating the money supply. Central banks also typically act as lenders of last resort to banks in times of financial crisis, and can also supervise and regulate banks and other financial institutions. Examples of central banks include the Federal Reserve in the United States, the European Central Bank, and the Bank of Japan
Read this term.
Current RBA Governor Lowe’s term ends in September. He made some bad gaffes during his tenure, including the foolish promise (
) to the Australian people in 2020 that the Bank will not raise interest rates until 2024 at the earliest, before raising them first in May of 2022 and hiking month after month since then.
The government conducted a review of the bank this year and will make changes. Lowe thinks he has a good chance of staying in the big chair while the changes are implemented, as a more or less steady influence. We’ll find out soon.
I’ve posted this before, but it denotes a loss of bank credibility (linguistic warning in this video):