Treasurer Chalmers comments:
- Agreed on a new monetary policy statement with RBA
- Reserve Bank board and govt agree that a flexible inflation target is appropriate framework for achieving price stability
- RBA, govt agree that an appropriate goal is consumer price inflation between 2 and 3 per cent
- Reserve Bank board sets monetary policy such that inflation is expected to return to the midpoint of the target
- The appropriate timeframe for this depends on economic circumstances
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This is just a shifting of the deckchairs.
More:
- RBA to publish detailed forecast data and assumptions including for the cash rate
- Once the new monetary policy board is operational it will publish an unattributed record of votes and will publish board papers after five years
- Monetary policy board will convene and engage with an expert advisory group on monetary policy to provide the board with a wide range of external views
I posted views on the changes coming up at the RBA a few months ago:
