The Australian government is “committed to a broad-based, independent review of the Reserve Bank of Australia (RBA) and the nation’s monetary policy settings after this year’s election,” Treasurer Josh Frydenberg said in an exclusive year-ahead interview with the Australian Financial Review (AFR) on Friday.

Additional takeaways

“It was timely to hold a review after the election, which is scheduled for some time between March and May.”

‘Shadow Treasurer Jim Chalmers is also committed to an examination of the RBA if Labor forms government.”

‘The opposition supported a review of the Reserve Bank’s goals and objectives, tools and levers, processes and public commentary, and Labor would “have an open mind” about how best to proceed.”

“The inflation target would probably be a central part of any review, which could also look at the Reserve Bank of New Zealand’s mandate to consider house prices in setting interest rates.”

“The composition of the RBA’s board and its communication strategy would also be likely to be scrutinised.”

more to come ...