Treasurer Jim Chalmers, in a statement, revealed the conduct of monetary policy this morning.
The statement is an agreement between the government and the Reserve Bank of Australia, outlining each group’s responsibilities regarding interest rates.
The RBA is to publicize its unattributed votes for each of its monetary policy decisions, and it is required for the board members to give one speech each year.
Compared to previous decisions where the RBA had an inflation target between 2% and 3%, from next year this target will be fixed at 2.5%.
As per the economist, such a move to restrict the inflation target would result in interest rates remaining higher for a longer period.
- Published By Team Australia News