The Reserve Bank of Australia (RBA) has embraced the social media age, launching campaigns on Instagram, Facebook, and Threads following a trial of sponsored content last year. This marks a significant shift in the central bank’s communication strategy. At its core, the RBA’s new initiative explains why inflation poses risks to the economy and how the institution works to keep it within its 2 to 3 per cent target band. Data from Meta’s Ad Library indicates the Instagram posts specifically target women aged between 18 and 44, aiming to broaden the bank’s public engagement.
The Reserve Bank of Australia (RBA) serves as the nation’s central bank, setting monetary policy to maintain price stability and contribute to financial system stability. This enhanced communication push comes three years after a review highlighted the RBA’s need to better explain its policies and decisions to the public. University of Sydney researcher Mitchell Hobbs lauded the campaign as an “excellent example” of how government agencies can reach the public amidst rising political populism. AMP deputy chief economist Diana Mousina added that greater public understanding of the RBA’s actions can help influence spending habits and simplify achieving its mandate.
The RBA’s efforts to explain its inflation-fighting mandate are timely, given recent economic pressures. The bank has increased interest rates twice this year, with further rises anticipated amidst souring consumer sentiment and a looming cost-of-living shock. Economists forecast additional increases, potentially pushing the official cash rate to its highest since the global financial crisis, partly due to an oil price surge attributed to a US-Iran conflict. Globally, central banks increasingly use social media for direct public engagement; examples include the Bank of England and the European Central Bank. However, the RBA’s new channels have also become a forum for public dissent regarding higher rates, highlighting communication challenges.
