The maintaining price stability and fostering economic prosperity, the Reserve Bank of Australia (RBA) employs traditional monetary policy measures aimed at regulating the nation's money supply and promoting economic expansion. The RBA articulates that its monetary policy is cantered around three core objectives, which is maintaining low and consistent inflation, ensuring full employment and enhancing the economic well- being of the country. The central bank influences the overall demand in the economy by adjusting interest rate The central bank influences the overall demand in the economy by adjusting interest rates. The RBA's primary instrument for influencing the economy is the cash rate, which is the conventional approach to monetary policy. Decisions regarding the cash rate are informed by the RBA's analysis of various economic indicators, including inflation and growth metrics. The RBA determines a target for the cash rate, which is essentially the rate at which banks lend to each other overnight in the money market. This rate indirectly affects all other interest rates in the economy