The Reserve Bank of Australia published initial findings from the first three waves of a new nationally representative community survey, launched in early 2025, to assess how Australians experience the economy, understand the RBA and view the institution. Across 9,000 respondents surveyed in February 2025, September 2025 and late February to early March 2026, inflation was the dominant economic concern, public awareness of the RBA was high, but understanding of how monetary policy works was uneven, especially on how higher interest rates affect inflation. The article also found that trust in the RBA has been broadly stable since early 2025 and is linked both to knowledge of the economy and to inflation expectations. Around two-thirds of respondents ranked inflation among their top three concerns, with concern especially pronounced among lower-income households. On monetary policy, about half correctly linked higher interest rates to weaker economic activity and employment, but only 25 per cent correctly said higher rates would lower inflation, while more than half thought they would raise it. Most respondents recognized the RBA's role in setting the cash rate and maintaining price stability, but awareness of its full employment objective and non-monetary policy functions was much lower, and some respondents incorrectly believed it regulates banks or directly controls the exchange rate. Trust scores were moderate to high, with a median of six out of 10 in all three waves and an average of 5.5 in February 2026, little changed from February 2025. The analysis linked higher trust to stronger economic literacy, better understanding of the RBA's role, and perceptions that the institution acts with integrity, is open and honest, and understands its impact on households. It also found higher trust was associated with, and in the article's instrumental-variables analysis lowered, inflation expectations on average. The RBA said the findings support further work on clear, accessible and targeted communication, particularly for younger people and groups with lower economic literacy. It plans to continue the survey every six months and publish periodic summaries to track changes in public understanding, trust and expectations and to inform its communication and engagement approach.
Reserve Bank of Australia2026-07-22
Reserve Bank of Australia publishes community survey findings showing inflation tops concerns and gaps in monetary policy understanding
The Reserve Bank of Australia published findings from the first three waves of its new community survey, showing inflation remains Australians' main economic concern and that understanding of monetary policy is uneven. Awareness of the RBA is high, but only 25 per cent of respondents correctly said higher interest rates would lower inflation, while trust in the RBA has remained broadly stable and is linked to lower inflation expectations. The central bank said it will keep running the survey every six months to guide its public communications.