The Reserve Bank of Australia has detailed how important investment in data and technology

The top boss of the nation’s central bank believes investment in technology and data will be crucial to Australia’s economic revival from the coronavirus pandemic.

Reserve Bank of Australia governor Philip Lowe said investment in digital infrastructure was vital for the nation to take full advantage of the upswing out of Covid-19, which has accelerated the shift to online business.

Dr Lowe referred to the value of data as the new oil of the 21st century with funding in IT and data science one of the key measures to ensure Australia’s economy remains robust.

He said, digital technology was a key area the central bank believed would help the nation’s recovery with tech-based jobs set to lower the unemployment level that stand at 6.4 per cent. Investing in data and our digital capability are critical to our future prosperity. These investments allow better decision making and a faster response to the changes in our economy and society. The RBA is conducting research on the technologies and policy implications of a potential wholesale central bank digital currency. This could use distributed ledger technology to support the settlement of transactions in the interbank payment system.

The RBA also revealed it was looking into the possibility of a digital Australian currency for the future.

Dr Lowe also noted the RBA would continue to assist the economy with increased support until it was closer to the goals of full unemployment and steady inflation. Employment and inflation are at subdued levels because of the 2020 downturn sparked by the pandemic. The RBA is adamant its cash rate setting will be kept at 0.1 per cent for a next few years while inflation is below the target level of 2 to 3 per cent and wages growth remains stagnant.