The stance of monetary policy is primarily determined by the level of the OCR.5 We make changes to the OCR to achieve our monetary policy objectives, but we need it to transmit through to the wider economy for this to work. Financial markets play a key role in this transmission of monetary policy.
https://www.rba.gov.au/speeches/2021/sp-gov-2021-09-14.html  13/14  9/14/21, 1:55 PM  Delta, the Economy and Monetary Policy | Speeches | RBA  Endnotes [*]  I would like to thank Penny Smith for assistance in preparing this talk. The materials on this webpage are subject to copyright and their use is subject to the terms and conditions set out in the Copyright and Disclaimer Notice.