Reserve Bank reveals 2024 schedule after policy review

The RBA has revealed big changes to its operations next year, as Australians wait nervously for next week’s decision on rates.

Australia’s Reserve Bank has revealed a slimmed down schedule that outgoing governor Phillip Lowe says will contribute to “better decision-making”.

On Tuesday, the bank published its meeting schedule for 2024 outlining how its board will now meet every six weeks from February 5.

The move comes after an independent review recommended a shake-up of the bank’s operations.

From next year, the board will gather on the first Monday of February, May, August and November, while four other meetings will be held midway between those dates.

Each meeting will run over two days, with the Bank’s new governor Michele Bullock to hold a media conference on the second afternoon to explain the decision.

Remaining meetings this year, held on the first Tuesday of every month, will continue as planned.

Outgoing governor Philip Lowe will be replaced when his term ends in September. Picture: NCA NewsWire/Tertius Pickard

Earlier this month the government announced current Reserve Bank deputy Michele Bullock will take over the top job. Picture: NCA NewsWire / Martin Ollman

Announcing the changes earlier this month, Dr Lowe said the “increasingly complex” world necessitated changes in the bank’s operations.

“It is right to re-examine how we make and communicate monetary policy decisions and how the RBA is managed,” he said.

“The less frequent and longer meetings will provide more time for the Board to examine issues in detail and to have deeper discussions on monetary policy strategy, alternative policy options and risks, as well as on communication.”

The move will bring the Reserve Bank in line with other countries, including the US and New Zealand, whose central banks typically meet eight times a year.

Fewer meetings is expected to give the economy more time to digest the board’s latest decision on the cash rate.

Theoretically, fewer meetings means fewer changes to rates, but it could potentially lead to larger interest rate adjustments at each meeting.

An independent review of the Reserve Bank was released in April calling for 51 recommendation to change governance. Picture: NCA Newswire /Gaye Gerard.

AMP Investments chief economist Shane Oliver said the move to fewer meetings could lead to more considered decisions, but may come with more bigger moves at times as seen in other countries.

“The good news is that all the heavy lifting on interest rates has already been done and with inflation falling globally and in Australia we are likely at or close to the top on interest rates,” he said.

“In fact, the new Governor’s first big decision will likely be to cut interest rates starting next year, although she will have to deal with the fallout from the rate hikes.”

The announcement comes as the Reserve Bank prepares to meet next Tuesday to decide whether changes to the cash rate is required in the ongoing effort to tame inflation.

Last month, the Bank left its official cash rate at 4.1 per cent, the second pause to interest rate hikes since May 2022.

The central bank board flirted with the idea of raising interest rates when it met in July but ultimately held the rate at 4.10 per cent, arguing the full effect of the rapid tightening cycle had yet to be felt.

Originally published as Reserve Bank reveals 2024 schedule after policy review