8 December 2023

Statement on the Conduct of Monetary Policy

Today I am releasing, with the Reserve Bank of Australia (RBA), an updated Statement on the Conduct of Monetary Policy.

The Statement has been agreed with the Reserve Bank Board, including Governor Michele Bullock. It is the result of careful consideration and extensive consultation with the RBA, the Reserve Bank Board, and Treasury.

The Statement reaffirms the Government’s commitment to the independence of the RBA, sets out the agreed approach to meeting the Board’s legislated objectives and helps implement recommendations of the RBA Review.

This is part of the Albanese Government’s commitment to ensuring Australia’s central bank remains world class with a monetary policy framework fit to meet current and future economic challenges.

Consistent with the recommendations of the RBA Review, the Statement provides detail about the RBA’s inflation and employment goals, including the flexible inflation targeting framework and the Board’s role in achieving full employment.

Our shared understanding around strengthening decision making, accountability and transparency in monetary policy decisions is also outlined in the Statement. This includes a commitment to maintain high standards of governance to support decision making and public trust.

The Statement complements the Treasury Laws Amendment (Reserve Bank Reforms) Bill 2023 that was introduced into Parliament last week to strengthen and modernise the RBA. The legislation will reinforce the RBA’s independence, clarify its role and modernise its structure.

This work is part of the Albanese Government’s broader efforts to reform, renew and refocus the nation’s key economic institutions.

Download the Statement on the Conduct of Monetary Policy [PDF 453KB]