In January 1990, the Reserve Bank of Australia (RBA) began announcing and explaining changes in the target cash rate. This has increased public understanding of monetary policy and, by increasing the attention given to changes in interest rates, has affected the way in which changes in policy...

This paper is one of a series of papers about monetary policy and the economy. The focus of this particular paper is the way banks have changed their behaviour as a result of the process of deregulation that began in the 1970s and accelerated in the 1980s. The principal theme of the paper is the...