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Treasurer expected to confirm the Reserve Bank’s board will split in two, establishing a dedicated panel for setting interest rates, as a remote WA town welcomes the world’s astronomers. Follow live
Good morning and welcome to our rolling blog on another big news day in Australia. I’m Martin Farrer and we have a rare total solar eclipse today, as well as news of an even rarer major reform of the Reserve Bank. That’s going to dominate early proceedings until Natasha May hops in the chair.
Jim Chalmers is expected to announce today that the Reserve Bank board will be split between a special panel to handle interest rates and one dealing with less important roles, as recommended by the first formal review of the central bank since the 1990s. The treasurer says it’s all about ensuring the bank is “strong and effective” and it follows concern that the bank’s forward guidance about rates went awry last year. But the big reveal is that it will retain its strict target of keeping inflation between 2% and 3%. Stay tuned for all the developments as they happen.
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