Bloomberg carry the comments from Goldman Sachs on the Reserve Bank of Australia review.

  • While the review recommended keeping the Reserve Bank’s 2-3% inflation target, it removed the current vague “over time” caveat and instead focused on the 2.5% mid-point of the goal.
  • The report also said the RBA’s full employment objective should be given equal weight to containing inflation.

Goldman Sachs says:

  • “Together, we view these changes as prioritizing a more precise inflation target over an implicitly shorter, albeit still unspecific, period of time,”
  • “The clearer, and implicitly nearer-term, prioritization of the RBA’s inflation/employment targets are likely to have incrementally hawkish implications for monetary policy,”

More at the Bloomberg report, gated

Michele Bullock is an Assistant Governor(Financial System) at the Reserve Bank of Australia, spoke e

---

ICYMI, the headlines from the review:

RBA review recommends a board with more expertise