It’s lucky inflation is falling. Most of us don’t even understand what the Reserve Bank does

Most of us don’t even understand what the Reserve Bank does Shane Wright Senior economics correspondent July 29, 2026 — 6:53pmJuly 29, 2026 — 6:53pm Save You have reached your maximum number of saved items. Martin Place, Sydney is, of course, the home of the Reserve Bank. The Reserve Bank sets interest rates, but most people don’t understand what effect this has on the economy. The bank lifts interest rates to reduce inflation, but only 27 per cent of Australians picked up on that core central bank objective. The Reserve Bank has what is known in central bank circles as a dual mandate.