NAB Assess The RBA Review

In the wake of the formal release of the RBA review and in light of the widely accepted recommendations, NAB note that “it is hard to read too much into the changes re the near-term outlook for rates. Certainly, that was not what Lowe’s press conference suggested. Over time a new Governor or the members of the MPB might also have a different view at the margin about how quickly inflation should return to target and how the focus on employment might be taken. These issues will become clearer later this year with the RBA reporting on the Review, the new Statement on the Conduct of Monetary Policy and from 1 July 2024, the operation of the new dual board structure of the RBA. Overall, the recommendations of the Review Committee seem very sensible and will contribute to Australian institutional arrangements remaining sound and predicable.”