Treasurer Jim Chalmers announced the changes on Thursday, describing them as a crucial milestone in strengthening the RBA’s independence, accountability and transparency amid evolving economic challenges.
“These reforms are all about reinforcing the Reserve Bank’s independence, clarifying its mandate, modernising its structures and enhancing its accountability,” the Treasurer said in a statement.
“This is part of the Albanese government’s commitment to ensuring Australia’s central bank remains world class with a monetary policy and governance framework fit to meet current and future economic challenges”.
Under the new Statement on the Conduct of Monetary Policy (SCMP), the RBA is obliged to publish an unattributed record of votes – a recommendation stemming from the RBA review recommended to enhance the transparency and accountability of the central bank.
The RBA’s post-meeting statement in July contained the first iteration of this obligation, revealing the board’s decision to hold the cash rate at 3.85 per cent came down to a 6-3 vote.
Moreover, the SCMP requires the RBA to conduct “at least one speech or public engagement per year”, while also obliging the governor to front the House of Representatives standing committee on economics at least twice a year alongside other parliamentary committees as appropriate.
As for the first Statement of Expectations, the Treasurer explained that it aims to clarify the RBA’s responsibilities pertaining to accountability, transparency and operational matters, along with progress updates in implementing the RBA review recommendations.
“The statement brings the RBA into line with best practice making the governance board’s role clear in overseeing the bank’s culture and driving institutional change,” the Treasurer said. “I thank governor Bullock, the bank’s boards and its leadership for their work bedding down the reforms.”
Legislation to overhaul the central bank was passed late last year. Along with the aforementioned requirements, the reforms also split the RBA into two separate boards, one for interest rate decisions and the other for governance.
The dual-board structure came into effect on 1 March 2025.
The reforms were starkly criticised by AMP chief economist Shane Oliver, who questioned their efficacy in December 2024. Oliver described the changes as “unfortunate” due to the lack of evidence behind the proposal to split the board creating better outcomes.
