FEWER meetings, post-decision press conferences and more board member interaction with staff have been given a tick by the governor of the Reserve Bank.\\<\/p>\n
Philip Lowe has signed off on a range of recommendations from an independent review released in April.<\/p>\n
The board will meet eight times a year, as opposed to 11, and the meetings will run longer.<\/p>\n
Board members will also have opportunities to hear directly from the central bank’s employees ahead of those meetings and the governor will front post-meeting media conferences.<\/p>\n
“Together, these changes are significant and represent a substantial response to the recommendations of the review,” Dr Lowe said.<\/p>\n
The other key change put forward by the three reviewers was to create two boards – one for setting monetary policy and one for day-to-day operations.<\/p>\n
Dr Lowe said other recommendations would be considered after the new monetary policy board was up and running to avoid locking it into a particular approach.<\/p>\n
This includes the possibility of publishing an anonymous vote count and more public appearances from board members.<\/p>\n
He said the existing and proposed structures were unusual by international standards.<\/p>\n
“In almost every other central bank, most of the decision-makers are insiders – that is, they spend the bulk of their time inside the central bank,” he said.<\/p>\n
He said only two of the nine board members were currently insiders and the reliance on outside members would continue under the new structure.<\/p>\n
“The Australian model has the advantage of ensuring diversity of thought and it helps bring a wider perspective to monetary policy decisions,” he said.<\/p>\n
“However, it does have implications for the way those decisions are communicated and the appropriate accountability mechanisms.”<\/p>\n
He said it was appropriate for the new board to decide on these matters at a later date.<\/p>\n
The governor also revealed the extent of work already under way to reform the bank’s culture and address other recommendations.<\/p>\n
The RBA has committed to recruiting a chief operating officer and someone to head a new internal communications function.<\/p>\n
Treasurer Jim Chalmers told reporters on Wednesday he would soon take to federal cabinet a recommendation regarding the future of Dr Lowe beyond the expiry of his seven-year term in September.<\/p>\n
He said he had consulted with opposition counterpart Angus Taylor and would work with cabinet colleagues to make the best decision for the nation.<\/p>\n
“The Reserve Bank review and the appointment of a governor is not about undermining the independence of the Reserve Bank – it’s about enhancing it,” Dr Chalmers said.<\/p>\n
It is still possible Dr Lowe will have his term extended but other names mentioned include finance department head Jenny Wilkinson, treasury boss Stephen Kennedy and RBA deputy governor Michele Bullock.<\/p>\n
Asked if he would stay on at the treasurer’s request, Dr Lowe said he would be honoured to.<\/p>\n
“If I am not asked to continue in the role, I will do my best to support my successor, and the treasurer has said he will make an announcement before the end of this month.”<\/p>\n
Dr Lowe will travel with Dr Chalmers to India next week for a meeting of the G20 finance ministers and central bank chiefs.<\/p>\n","protected":false},"excerpt":{"rendered":"
FEWER meetings, post-decision press conferences and more board member interaction with staff have been given a tick by the governor of the Reserve Bank.\\ Philip Lowe has signed off on a range of recommendations from an independent review released in April. The board will meet eight times a year, as opposed to 11, and the […]<\/p>\n