Treasurer sets out expectations for new RBA governance board
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The news: Federal Treasurer Jim Chalmers has set out the government's expectations for the Reserve Bank's newly formed governance board, and issued a revised statement on its conduct of monetary policy as part of efforts to strengthen the independence and transparency of the central bank.
The context: Chalmers released the government's first statement of expectations for the RBA's governance board, setting out responsibilities for accountability, transparency and operational matters, on Thursday.
This is a separate board to the monetary policy board, which determines rates.
The Treasurer also issued an updated conduct of monetary policy statement, which was formally agreed by central bank's monetary policy board this week, and finalises the government's implementation of the historic RBA reforms.
The statement sets out an agreed approach to meeting legislated objectives, including the publication of unattributed votes by the RBA's monetary policy board.
The new statement will also require monetary policy board members to conduct at least one speech or public engagement each year.
What they said: "These reforms are all about reinforcing the Reserve Bank’s independence, clarifying its mandate, modernising its structures and enhancing its accountability," Chalmers said in a statement.
"The [statement on the conduct of monetary policy] reaffirms the government’s commitment to the independence of the RBA and sets out the agreed approach to meeting the board’s legislated objectives," he said.
The source: Treasurer media release
