Strict Monetary Policy Definition Please (1 Viewer)

[LegoSlaughter]

Does monetary policy also include other RBA functions like jawboning and exchange rate intervention or is purely the manipulation of the cash rate.

 

[SpecterLitt]

Purely the cash rate, which can indirectly affect exchange rates due to interest rate differentials and carry trade. Direct exchange rate intervention by the RBA is dirtying the float where they buy or sell AUD in the forex market to change the value of the AUD.