Today I am releasing an updated Statement on the Conduct of Monetary Policy (SCMP) and the first Statement of Expectations for the RBA’s Governance Board.
The RBA Monetary Policy Board formally agreed the new SCMP at its meeting on 7–8 July.
These new Statements are next steps to strengthen the independence and transparency of the RBA.
They finalise the Government’s implementation of our reforms to the RBA, including the publication of unattributed votes by the Monetary Policy Board.
These reforms are all about reinforcing the Reserve Bank’s independence, clarifying its mandate, modernising its structures and enhancing its accountability.
This is part of the Albanese Government’s commitment to ensuring Australia’s central bank remains world class with a monetary policy and governance framework fit to meet current and future economic challenges.
The Statements are the result of careful consideration and extensive consultation with the RBA, the Bank’s boards, and Treasury.
I thank Governor Bullock, the Bank’s boards and its leadership for their work bedding down the reforms.
The SCMP reaffirms the Government’s commitment to the independence of the RBA and sets out the agreed approach to meeting the Board’s legislated objectives.
Under the new SCMP the RBA publishes an unattributed record of votes.
The RBA Review recommended this change to enhance the transparency and accountability of the RBA.
The new SCMP also implements another key transparency and accountability recommendation for the Monetary Policy Board members to conduct at least one speech or public engagement each year.
The first Statement of Expectations for the newly constituted Governance Board clarifies the Board’s responsibilities when it comes to accountability, transparency and operational matters, as well as reporting on progress in implementing the RBA Review recommendations.
The RBA Governance Board considered the Statement at its meeting on 10 June.
The Statement brings the RBA into line with best practice making the Governance Board’s role clear in overseeing the Bank’s culture and driving institutional change.
Read the Statement on the Conduct of Monetary Policy
Download the Statement of Expectations [PDF 127 kB]