Plan to overhaul the RBA could be back on the agenda. Australia’s government Labor Party and left-wing Greens Party held last-minute talks to revive the stalled legislation

Bloomberg had the report (Bloomberg is gated).

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Reminder of what this is all about.

In 2023, the Reserve Bank of Australia (RBA) underwent a comprehensive review, leading to significant proposed reforms aimed at enhancing its governance and decision-making processes.

Key Proposed Changes:

Dual Board Structure:
- Monetary Policy Board: This board will focus exclusively on setting monetary policy, including interest rates. It will comprise members with specialized expertise in economics and monetary policy.
- Governance Board: This board will oversee the RBA’s operational aspects, such as management, strategy, and finances, ensuring effective organizational governance.
Meeting Frequency and Transparency:
- The number of monetary policy meetings will be reduced from 11 to 8 per year, allowing for more in-depth discussions.
- Press conferences will be held after each meeting to enhance transparency and public understanding of decisions.
Board Composition and Accountability:
- The inclusion of external experts on the Monetary Policy Board aims to provide diverse perspectives and reduce the risk of “groupthink.”
- Board members will be encouraged to make regular public appearances to discuss their views, promoting accountability.
Government Override Power:
- The government retains the power to overrule RBA decisions in exceptional circumstances, ensuring a balance between independence and accountability.