Today I announce the first wide‑ranging review of the Reserve Bank of Australia since the current monetary policy arrangements were instituted in the 1990s.
This delivers on our commitment to conduct a broad‑based review of the setting of monetary policy in Australia.
The Reserve Bank is a crucial economic institution which has served Australia well for more than six decades.
This is all about ensuring we have the world's best and most effective central bank into the future.
Australia is facing a complex and rapidly changing economic environment, as well as a range of long‑term economic challenges.
This is an important opportunity to ensure that our monetary policy framework is the best it can be, to make the right calls in the interests of the Australian people and their economy.
The Review will consider the RBA's objectives, mandate, the interaction between monetary, fiscal and macroprudential policy, its governance, culture, operations, and more.
The Terms of Reference for the Review are attached and available online.
A panel of three experts from Australia and overseas, independent of the RBA and outside of the Treasury Department, will lead the Review:
- Carolyn Wilkins, an external member of the Financial Policy Committee of the Bank of England and former Senior Deputy Governor to the Bank of Canada;
- Professor Renee Fry‑McKibbin, one of Australia's leading macroeconomists and Interim Director of the Crawford School of Public Policy at the Australian National University;
- Dr Gordon de Brouwer PSM, an eminent Australian economist and Secretary for Public Sector Reform with 35 years' experience in public policy and administration in Australia including at Treasury and the Reserve Bank of Australia.
The Panel will be supported by a secretariat with Treasury and other staff.
The Review will produce a final report with recommendations to Government by March 2023.
It will consult with domestic and global experts, former members of the Board, and members of the public and will seek submissions to ensure a wide range of opinions are considered.
It will draw on some of the world's best and brightest experts to ensure the RBA has the right objectives, policies, governance and culture for the future.
