First independent review of the Reserve Bank orders sweeping overhaul
Two new boards will deal with monetary policy decisions and governance separately
The rate-setting panel will be filled with experts and be expected to challenge the governor
Rates decisions will occur eight times annually, down from 11
Board members will be encouraged to speak out and their personal rate votes will be disclosed anonymously
The failure of the Reserve Bank board to vote against a single recommendation of the bank’s executive once in the last decade or to challenge emergency pandemic measures was used to justify the creation of separate governance and monetary policy panels for the central bank.
The review found the board’s outside members – drawn from business, industry and government and community boards – lacked the expertise to scrutinise and challenge with sufficient rigour the financial and economic judgments underlying interest rate recommendations of the RBA’s staff.
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Ben Potter writes on energy, climate change and innovation, and has been Washington correspondent, opinion editor and companies editor. Connect with Ben on Twitter. Email Ben at bpotter@afr.com
