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 Reserve Bank is at risk of “groupthink” because of a culture that concentrates decision-making in a handful of senior leaders and a failure to be more open to external views, the first review of the central bank in decades shows.
The findings are in a sweeping review by former Bank of Canada senior deputy governor Carolyn Wilkins, Australian National University economics professor Renee Fry-McKibbin, and the secretary for public sector reform Gordon de Brouwer, who surveyed 1089 current and former staff members.
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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
