The Crest of the Commonwealth of Australia Treasury Portfolio Ministers
Picture of Wayne Swan

Wayne Swan

Deputy Prime Minister and Treasurer

3 December 2007 - 27 June 2013

30 September 2010

NO.066

Gillard Government Re-Affirms Independence Of Reserve Bank Of Australia

The Deputy Prime Minister and Treasurer, on behalf of the Gillard Government, today signed a new Statement on the Conduct of Monetary [PDF 24KB] Policy with the Governor of the Reserve Bank, re-affirming Australia's central banking policy framework and the statutory independence of the Reserve Bank.  

The Reserve Bank's inflation targeting framework has served Australia well and is reaffirmed in the new Statement.

Price stability is critical for sustainable growth in our economy and for creating jobs.  In pursuing the goal of medium-term price stability, both the Reserve Bank and the Government re-affirm the objective of keeping consumer price inflation between 2 and 3 per cent, on average, over the cycle.

The Gillard Government endorses the RBA's inflation target range and emphasises the role that disciplined fiscal policy can play in achieving this outcome.   

The Statement also recognises the Bank's longstanding responsibility for financial system stability, which is critical to a stable macroeconomic environment.

As we saw during the global financial crisis, the Reserve Bank's central position in the financial system gives it a key role in financial crisis management. In fulfilling this role, the Reserve Bank will continue to coordinate closely with the Government and with Australia's other world-class financial regulators.

The Deputy Prime Minister and Treasurer expressed support for these arrangements, which served Australia well during the global recession. Monetary and fiscal policy have worked together to support Australia through the biggest global economic downturn in 75 years.

The Gillard Government is committed to continuing its record of responsible economic management to promote strong and stable growth with low inflation for the future.

CANBERRA
30 September 2010