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
The Reserve Bank will be expected to publicly discuss in more detail its goals for the labour market, via a narrower dual mandate focusing on full employment and stable inflation.
The bank will continue a flexible approach to targeting inflation in the 2 per cent to 3 per cent band as it has since the early 1990s. But it has been recommended by the first independent review of the bank to drop reference to the “on average, over time” goal.
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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
