Regulatory challenges of the mandate of the Reserve Bank of Australia (RBA)

The governance and accountability of the RBA requires strengthening, and the legislative framework of the RBA should be amended to accommodate the key elements of the Statement on the Conduct of Monetary Policy. In particular, the RBA’s mandate for financial stability, the role and nature of the inflation-targeting model of monetary policy, and relevant accountability arrangements included in the Statement on the Conduct of Monetary Policy should be provided with a statutory underpinning in the Reserve Bank of Australia Act (1959). Legislative improvements will also enhance the legitimacy of the RBA.