Reserve bank of Australia (RBA), which serves Australis's central bank, could use several tools to reduce inflation rates and inflationary expectations that distort economic growth and employment, which has implemented a contractionary monetary policy stance. In response to the economic fallout from COVID -19 pandemic, the cash rate was lowered to historic lows. (interenet). However, The Reserve Bank's decision to increase the cash rate target by quarter of a percentage point, taking the benchmark interest rate to 4.35%, is a monetary policy action as its highest rate in 12 years (based on website)