The Australian government has released an independent review of the Reserve Bank of Australia (RBA) that provides a framework for the central bank’s reform.
The review (pdf) pointed out that the current RBA board’s composition and decision-making processes were not sufficient to allow the bank to make policy decisions, strategies and judgments effectively.
It then made 51 recommendations to improve the decision-making process of the RBA, its corporate governance structure and monetary policy process, as well as the accountability and transparency of its board and leaders.
Two Separate RBA Boards
At the core of the review is the recommendation for establishing two separate boards. One is in charge of governing the central bank, and another is responsible for setting interest rates….