Reserve Bank board meetings will be held less often and run over two days, and the governor will hold press conferences after each one in recommended changes from an independent review.
Reserve Bank governor Philip Lowe also said there may not be a need for future interest rate rises, after the bank lifted the official cash rate from 0.1 per cent to 4.1 per cent in just over a year.Louise Kennerley
Lowe did not address his own future or the role of governor, but he noted that the review found the central bank had dedicated, highly skilled staff, and that its inflation target of 2-3 per cent was fit for purpose.Reserve Bank board meetings will now be held eight times a year, instead of the current 11 meetings.
“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,” Lowe said.The board will also hear directly from more staff and have greater opportunity to request work on particular topics.
The bank has held off making other substantive changes until after the government has considered any legislative reforms, Lowe said. “The Australian model has the advantage of ensuring there is diversity of thought, and it helps bring a wider perspective to monetary policy decisions,” he said.“However, it does have implications for the way those decisions are communicated and the appropriate accountability mechanisms.
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