The independent review of the Reserve Bank of Australia (RBA) has been released.
Recommended creating a specialist board to manage monetary policy that would be chaired by the governor and have a dual mandate of price stability and full employment.
Headlines via Reuters:
- Review recommends RBA should have dual objectives of price stability and full employment
- RBA should retain a flexible inflation target of 2% to 3% and aim at the midpoint
- How quickly to return inflation to middle of target should be the RBA’s judgement
- RBA should clearly explain how it is balancing its two monetary policy objectives
- Government should form a monetary policy board with greater economic expertise
- Policy board should comprise RBA governor, deputy governor, treasury secretary and 6 external members, with the governor as chair
- Policy board should move to 8 meetings a year, with press conference after each meeting
- Government should establish a RBA governance board with an external chair
- RBA should retain independence, power of government to override decisions should be repealed
- Government should legislate changes to commence from 1 July 2024
Reserve Bank of Australia Governor Lowe. he'll be speaking about the review later in the session: