SYDNEY, July 12 — The Reserve Bank of Australia (RBA) today unveiled a string of changes related to its monetary policy decision-making in response to an independent review released by the Department of the Treasury in April, reported Xinhua.
Addressing the Economic Society of Australia (Queensland) Business Lunch in Brisbane, RBA Governor Philip Lowe said that the bank board has spent time discussing the recommendations suggested by the review and decided on ten reforms regarding monetary policy decision-making and communication.
According to Lowe’s briefing, from 2024, the bank board will meet eight times a year, instead of 11 times as is currently the case.
The board meetings will be longer, typically starting on Monday afternoon and then continuing yesterday morning, with the outcome of every meeting announced at about 2:30 pm local time on the second day.
Before the board meeting, all board members will have the opportunity to attend an internal staff meeting.
The post-meeting statement will be issued by the board, not the governor, while the governor will hold a media conference after each meeting to explain the decision.
In addition, the quarterly Statement on Monetary Policy will be released at the same time as the outcome of the Board meeting, and the board, rather than just the governor, will be the signatory to the Statement on the Conduct of Monetary Policy.
Lowe also noted that the board will oversee the bank’s research agenda as it relates to monetary policy and aspects of financial stability, with the bank continuing with the current approach to climate change analysis.
“The Board will work with the Treasury to undertake five-yearly open and transparent reviews of the monetary policy framework,” he added.
Lowe’s remarks came after Australian Treasurer Jim Chalmers said on Wednesday morning that he would be taking his recommendation to the cabinet about the position of the Reserve Bank governor up soon. — Bernama-Xinhua
