It is arguably better if RBAs maintain the cash rate as compared to the federal government simply setting the cash rate. One of the reasons why it would be better if the RBAs are allowed to maintain the cash rate is because they are better in responding to pressures in their money markets. This is because of the Australian flexibility in frameworks for operating open markets within the country. The bank is therefore best suited to respond to pressures within the market more promptly and seamlessly with minimal alterations within the operating framework.
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