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
A revamped Reserve Bank board will be expected to robustly challenge Philip Lowe and future governors, as part of sweeping reforms designed to improve decisions and avoid mistakes, such as the bank’s failed guidance that interest rates would not rise until 2024.
External members of a specialist monetary policy board should contest interest rate calls at a slimmed down schedule of eight meetings a year – instead of the current 11 – and make their own economic speeches, an independent review has recommended. How members voted should also be anonymously disclosed.
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Michael Read is the Financial Review's economics correspondent, reporting from the federal press gallery at Parliament House. He was previously an economist at the Reserve Bank of Australia and at UBS. Connect with Michael on Twitter. Email Michael at michael.read@afr.com
John Kehoe is economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s first election. He joined the Financial Review in 2008 from Treasury. Connect with John on Twitter. Email John at jkehoe@afr.com
