Uncharted Territory: Review of the RBA tabled in the House

THE House of Representatives Standing Committee on Economics today tabled its report titled Uncharted Territory: Review of the Reserve Bank of Australia (RBA) Annual Reports 2019 and 2020. The report focuses on matters arising from public hearings held in August 2020, December 2020, February 2021, August 2021 and February 2022.

The committee scrutinised the RBA on its response to the COVID-19 pandemic through monetary policy – in particular, reducing the cash rate, introducing a bond yield target and bond purchase program, providing a Term Funding Facility (TFF), and reducing the interest rate paid on Exchange Settlement (ES) balances.

The committee also heard from the RBA on Australia’s economic recovery, and broader economic conditions including inflation, unemployment, wage growth, labour supply and housing affordability. Beyond the COVID-19 pandemic, the committee inquired into issues such as digital currency, digital wallets and governance issues in the RBA.

Monetary policy was descried as remaining "incredibly consequential for the Australian economy during these times of great uncertainty" — in the wake of Russia’s invasion of Ukraine "and as we emerge from the pandemic".

Accordingly, the committee plans to continue to scrutinise the RBA’s policy responses to current and emerging threats to the strength of the nation’s economy and ensure the transparency and accountability of RBA decisions.  

A full copy of the committee’s report is available on committee’s website: www.aph.gov.au/economics

 

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