Most Australians know the RBA targets inflation. Far fewer know its jobs goal

Most Australians know the Reserve Bank's job is to keep inflation low and stable. Far fewer know it is also meant to support full employment, and many misunderstand how interest rates affect prices. Those are among the findings of a new survey of the community published by the Reserve Bank.

The research appears in the July 2026 RBA Bulletin, published on 22 July. It was written by Jack Harden, Peter Rickards and Michelle Wright of the Reserve Bank's Communications Department. This summary sets out what the researchers did, what they found and what the results can and cannot tell us.

Why the survey exists

Central banks increasingly rely on the public understanding what they are trying to do. If people expect inflation to stay high, they may behave in ways that keep it high, for example by pushing harder for price or wage increases. The survey was designed to understand how Australians experience the economy and how they see the Reserve Bank's role.

How the research was done

The survey is run online by JWS Research. It began in February 2025 and has so far run in three waves: February 2025, September 2025 and February to March 2026. The Reserve Bank plans to continue it twice a year.

Across the three waves, about 9,000 people responded. The sample was designed to be nationally representative, reflecting the population's mix of age, income, location and gender.

What the researchers found

Inflation is the top economic worry. Around two-thirds of respondents named inflation as one of their top three economic concerns. The researchers report this was consistent across demographic groups.

The inflation goal is well known; the employment goal is not. About 75% of respondents recognised that the Reserve Bank is responsible for keeping inflation low and stable. Only about 25% knew it also has a role in supporting full employment.

Many people misunderstand how rates work. More than half of respondents thought higher interest rates would increase inflation. The Reserve Bank's intended mechanism runs the other way: as its explainer on the transmission of monetary policy sets out, higher rates are meant to reduce spending and borrowing, which over time eases pressure on prices. The confusion is understandable. For a household with a mortgage, a rate rise increases a major cost, even if its purpose is to slow price growth across the economy.

Trust is moderate. Asked to rate their trust in the Reserve Bank out of ten, respondents gave a median score of 6. Around three-quarters gave a score of five or more. The researchers say this is comparable with other Australian regulators and with central banks overseas.

People want to know more. Around 70% said they were interested in learning more about the economy, and around 85% agreed it was important to keep up with economic news.

Trust appears to affect expectations. The researchers report evidence that higher trust in the Reserve Bank lowers people's expectations of future inflation. They use a statistical technique, instrumental variables, designed to separate cause from mere correlation. Findings of this kind depend on the assumptions behind the technique, so they are best read as strong evidence rather than proof.

Limitations

The researchers note that the most recent wave, in February 2026, was conducted around the outbreak of the conflict in the Middle East. They say it is likely some results have changed since then, particularly on concerns about prices.

Online surveys also have general limits. Weighting a sample to match the population's age, income, location and gender helps, but it cannot guarantee that respondents think like people who choose not to take part. And a survey records what people say, which may differ from how they act.

What it means

The findings point to a communication gap rather than a lack of interest. People are worried about inflation, say they want to understand the economy better, and mostly know what the Reserve Bank is for. Yet a majority hold a belief about interest rates that runs against the way monetary policy is meant to work.

For readers, the practical takeaway is simple. When the Reserve Bank raises rates, the aim is to cool spending so that price growth slows over the following year or two. The cost to borrowers is immediate; the intended benefit arrives later and is spread across the whole economy.

This summary reports the published research. It is general information, not financial advice.