Australia Passes Reserve Bank Reforms, Reshaping Economic Policy Framework

Legislation introduces a dual-board structure for the RBA, with a new interest rate-setting board set to begin in 2025.

The Australian Parliament has passed significant Reserve Bank reforms, creating a new board focused solely on setting interest rates, separate from the governance board.
The new interest rate-setting board is expected to begin operations after the RBA's February 2025 meeting, with appointments to the board yet to be announced.
The reforms aim to modernize the Reserve Bank's operations and improve transparency, including longer meetings and post-meeting press conferences already implemented this year.
Economists and financial institutions remain divided over the RBA's economic outlook, with debates centered on labor market conditions and inflation targets.
The reforms are part of a broader push for economic and competition policy changes, which could deliver up to $45 billion in economic gains and lower household costs.