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Rates in the gun in the biggest shake-up at Reserve Bank in 64 years

The article from The Sydney Morning Herald discusses a significant overhaul of the Reserve Bank of Australia (RBA), marking the most substantial changes in its 64-year history. The government has announced plans to reform the RBA's structure, focusing on enhancing its independence, transparency, and accountability. Key changes include the establishment of a separate monetary policy board, distinct from the governance board, to make interest rate decisions. This board will meet eight times a year instead of the current eleven, aiming for more thorough analysis and less frequent but more impactful decisions. Additionally, the RBA will now have a dual mandate to focus on both price stability and full employment, aligning with international best practices. The reforms also involve greater public communication, including press conferences after each meeting and the publication of the board's voting records. These changes are part of a broader effort to modernize the RBA, responding to criticisms about its decision-making processes and the need for more robust economic management in light of recent economic challenges.

Read the Full Sydney Morning Herald Article at:
[ https://www.smh.com.au/politics/federal/rates-in-the-gun-in-the-biggest-shake-up-at-reserve-bank-in-64-years-20241216-p5kyls.html ]