Analysis

The RBA’s billion-dollar blunders, and why it’s still paying for them

The review of the Reserve Bank outlines how and why Australians are paying a high price for the central bank’s pandemic policy mistakes.

Jonathan ShapiroSenior reporter

Apr 20, 2023 – 12.40pm

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Key Points

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

There has been so much mud slung in the direction of the Reserve Bank of late, we often forget the root of our discontent.

But the release of the extensive formal review provides an official document to assess where the institution has gone wrong. It outlines how and why Australians are paying a price for the central bank’s pandemic policy decisions.

Jonathan Shapiro writes about banking and finance, specialising in hedge funds, corporate debt, private equity and investment banking. He is based in Sydney.