(The bank also has its hands full dealing with issuing money, among a slew of jobs.) The need for regular bouts of scrutiny for the RBA was strongly hinted at as a likely outcome of the current review, as already happens for some overseas counterparts.Ī highly favoured outcome of the review will be the creation of a separate body to oversee the setting of interest rates. The trio had considered more than 100 submissions, interviewed more than 230 people and surveyed almost 1,100 current and former RBA staff. Last November, the panellists said there was “deep support” for the central bank remaining independent from executive government. What are some potential outcomes of the review? The review has three panellists: Australian National University professor Renée Fry‑McKibbin Carolyn Wilkins, an external member of the Bank of England’s financial policy committee and former deputy governor of the Bank of Canada and Gordon de Brouwer, a secretary for public sector reform. The review’s scope was to examine the RBA’s performance against four themes: its objectives, policy implementation, governance processes and public communications. Sign up for Guardian Australia’s free morning and afternoon email newsletters for your daily news roundup With prices rising at an annual clip of more than 8% at the end of 2022, the RBA now doesn’t expect inflation to drop back within its target range until 2025. What are the main themes of the review?įor the past three decades, the RBA has been charged with using interest rates to keep annual inflation within a 2% to 3% band over time as a proxy for sound economic management.įor much of the past decade, inflation tracked below 2%, fuelling criticism the RBA had kept its cash rate too high. There was “a need to address the and to look at what lessons can be learned, especially after this once-in-a-lifetime pandemic”, he said at the time. The treasurer during the Morrison government, Josh Frydenberg, flagged plans for a review in September 2021 as the economy began to emerge from Covid. While the central bank is in the midst of a record 10 consecutive monthly interest rate rises since last May – with another one a possibility on Tuesday – the prompt for the overhaul came earlier.
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