Changes are coming to the Reserve Bank

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Episode Transcript

Speaker 1 (00:02):
There are some pretty big changes coming to the Reserve
Bank of Australia as it looks to improve its transparency
and communication with the public following a major review. Before
we jump into just what those changes are, let's look
at what the Reserve Bank, or the RBAS it's also known,
actually does. They control the country's monetary policies and issues,

(00:22):
managing the Australian dollar and setting the official interest rate
of the country. However, the way they go about that
is about to change, with new policies coming into effect
next year after its recent hikes to the cash rate
amid the higher cost of living came under scrutiny. From
twenty twenty four, the Reserve Bank Board will meet eight
times a year instead of eleven, and will face the

(00:43):
media after each meeting.

Speaker 2 (00:45):
The Governor will hold a media conference after each board
meeting explaining the decision, and a media conference will typically
be held at three thirty pm, an hour after the decision.

Speaker 1 (00:55):
That's Governor Philip Lowe speaking there. He says he needs
to be more available who explain the RBA's decisions.

Speaker 2 (01:02):
From my perspective, what we're trying to do with our
communications is to tell people what we're doing why are
we doing it? The fact is we're taking into account
and how we're balancing the trade offs.

Speaker 1 (01:12):
However, a leading economist doesn't think it'll actually have much
of a change to the rising of interest rates.

Speaker 3 (01:18):
But it may improve transparency, it may improve the communication
of the bank itself, so it's not so much of
a mystery. And also I think it probably provides a
bit more thoroughness, having eight millions a year instead of
the standard eleven.

Speaker 1 (01:31):
That's Tim Harcourt from the University of Technology, Sydney there.
But regardless of the race decisions, the government says it's
a step in the right direction. Assistant Minister for Treasury
Andrew Lee welcoming the new policies.

Speaker 4 (01:43):
People want a clear explanation of monetary policy decisions and
this will ensure that the Reserve Bank Governor provides those
clear explanations after each interest rate decision.

Speaker 1 (01:54):
My name's Hannah Donald. Reporting for amplifying years and to
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