MNI BRIEF: Australian Government Announces RBA Review

The new Australian Labor government on Wednesday has announced an independent review of the Reserve Bank of Australia, the first since 1990.

Treasurer Jim Chalmers announced a three member panel to examine monetary policy frameworks, including whether the current 2% to 3% inflation target is appropriate. The panel comprises an external member of the Bank of England's financial policy committee, Professor Carolyn Wilkins, macroeconomist Professor Renee Fry-McKibbin and the secretary for public sector reform Gordon de Brouwer.

Chalmers told a press conference he wanted a "forward looking review" to ensure the RBA was the "world's best central bank."

The government also re-appointed Perth businessman Mark Barnaba to the RBA board, extending his term by a year. Barnaba is the deputy chair of iron ore miner Fortescue Metals Group.