8 meetings a year: the biggest changes coming to the RBA

1. The RBA Board will meet eight times each year to set monetary policy

The RBA currently meets 11 times per year to decide whether to raise, reduce or retain the cash rate. From 2024, there will be four meetings scheduled for the first Tuesday of February, May, August, and November. The remaining four meetings will take place between these dates.

The dates for all 2024 meetings will be announced shortly, and the dates for future years will be provided in advance.

2. Internal staff meetings prior to Board meetings

In order to facilitate greater engagement and information sharing, all Board members will be given the chance to participate in an internal staff meeting prior to the official board meeting.

This will allow them to directly interact with a wider spectrum of RBA staff, enabling them to gain insights, ask questions, and foster a deeper understanding of various perspectives within the organisation.

3. The duration of Board meetings will be extended

In the future, monetary policy meetings will typically commence on Monday afternoon and pick back up Tuesday morning. The results of the meeting will be announced at 2:30 pm on the second day, which is usually a Tuesday.

4. RBA Board to take responsibility for post-meeting statement

The post-meeting statement announcing the cash rate decision will be issued by the Board and not simply by the governor. This subtle variation is likely aimed at highlighting the Board’s involvement in the decision, potentially reducing the burden of blame from falling entirely on the governor.

5. RBA governor to deliver post-meeting speech

Following each Board meeting, the governor will hold a media conference to provide an explanation of the Board’s decision. These briefings are expected to occur at 3:30 pm, an hour after the decision is handed down.

6. Conveniently timed release of quarterly statement on monetary policy

From 2024, the quarterly Statement on Monetary Policy will be released simultaneously with the outcome of the Board meetings in February, May, August, and November. This replaces the existing practice of issuing the statement on the Friday following the decision.

Syncing the delivery of these releases may help to provide added context and rationale to the Board’s cash rate determinations. However, Dr Lowe said that the RBA is currently reviewing the framework for the Statement on Monetary Policy, indicating that future releases may be structured differently.

7. Signatory changes to important policy documents

In order to reflect the shared understanding on monetary policy between the RBA and the Australian government, the Board, rather than solely the governor, will be designated as signatory to the Statement on the Conduct of Monetary Policy. The statement was last updated in 2016. The new statement is expected to be finalised later this year.

8. Research agenda oversight

The Board will assume responsibility for supervising the central bank's research agenda concerning monetary policy and various aspects of financial stability.

Broadly, the RBA’s research agenda encompasses macroeconomic analysis, evaluating payment systems and digital currency, studying financial market dynamics and observing economic modelling and forecasts.

9. Regular, transparent reviews of the monetary policy framework

The Board will collaborate with the Treasury Department to conduct comprehensive and transparent reviews of Australia's monetary policy framework every five years. This process aims to ensure that the framework remains responsive to evolving dynamics in the global economy.

10. Climate change considerations preserved

The RBA will maintain its existing approach to climate change analysis, concentrating on assessing the economic, inflationary, and financial system ramifications of climate change.

The RBA Review has put forth several recommendations that, in the Board's opinion, would be more appropriate to address once the legislative process is finalised and the new Monetary Policy Board is established and functioning.

"This will avoid the current Board locking the new Board into a particular approach," Dr Lowe said.

Additional recommendations that may be implemented at a later date relate to the publication of Board member votes; regular public and media appearances by Board members; the establishment of an expert advisory group to the Board and more. 

In summary of the changes, Dr Lowe said that the new processes would help “the community to understand what we’re doing and why we’re doing it.”