Which institution acts as the central bank for Australia?

The Reserve Bank of Australia serves as the country's central bank, playing a crucial role in monetary policy, financial stability, and the maintenance of an efficient payment system. Established in 1959, it is responsible for managing the country's money supply and interest rates to ensure sustainable economic growth and stability in prices. The bank also oversees the banking system and provides banking services to the government.

In contrast, the Australian Federal Bank, Commonwealth Bank of Australia, and National Australia Bank are not central banks. The Commonwealth Bank and National Australia Bank are commercial banks that offer various financial services to individuals and businesses but do not have the authority or responsibilities of a central bank. The Australian Federal Bank does not exist as a recognized entity in the context of banking within Australia. Understanding these distinctions helps clarify the unique role that the Reserve Bank of Australia plays in the country's financial ecosystem.