The Reserve Bank of Australia board doesn’t meet this month. That is a pity, because otherwise the board may announce a New Year’s resolution. One particular resolution would be very reassuring to hear: A resolution to not raise interest rates until inflation expectations are re-anchored well above their pre-COVID levels. That is, not to waver from the bank’s course, even as inflation goes to temporarily high levels this year.

There are other resolutions the RBA might make. Its board could resolve to not introduce any more extraordinary monetary programs, like the Term Funding Facility, unless the benefits clearly outweigh the costs.