Review panel pledges to revitalise RBA

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The federal government will be given a list of ways to “revitalize the Reserve Bank of Australia”, according to the group tasked with reviewing it.

The review board – made up of Professor Renee Fry-McKibbin, Professor Carolyn Wilkins and Dr Gordon de Brouwer – provided an update on a CEDA event in Sydney on Thursday.

“The panel is confident that it is gathering the breadth and depth of opinion it needs to provide the government with recommendations to revitalize the RBA and prepare it for the years to come,” they said in a statement. .

The panel received more than 114 submissions, conducted a dozen focus groups, interviewed more than 230 people, and surveyed nearly 1,100 current and former RBA employees.

Several themes emerge.

“On monetary policy frameworks, the panel heard strong support for monetary policy to continue to be conducted by an independent central bank,” they said.

“There has been general, but not universal, support for a flexible inflation targeting framework, which is seen as having contributed to strong economic performance over the past 30 years.

“Several suggestions were put to the panel on how to specify this framework more clearly.”

The panel heard criticism of how the RBA had communicated with the public in recent years, including how it incorrectly stated that interest rates could remain at record highs until 2024.

There were seven spot rate hikes from May to November, with another scheduled for December.

With respect to governance, the panel heard suggestions on ways to increase the clarity of the board’s role and strengthen its accountability and composition.

The final review report – the first in more than 30 years – is due to Treasurer Jim Chalmers in March.

Dr Chalmers said he was delighted to see the high level of engagement in the review.

“By drawing on such a diverse range of views and expertise throughout the review, we will be able to ensure that Australia’s central banking and monetary policy arrangements are sound and effective in the future. future,” he said.

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