Some background on potential changes to the RBA-Government agreement on inflation
There is an agreement signed between the Australian government and Reserve Bank of Australia
This is not fresh news, just an update on potential changes to the agreement flagged by Australian Treasurer Frydenberg:
- 2-3 per cent target had served well
- but it had been a long time since it was around that level
- "It is not going to be a radical change, but there is a discussion about maybe ways we can strengthen that agreement, strengthen that target to ensure that we continue to see inflation where the Reserve Bank and the government want it to be"
The likely form of the change is to make the RBA more accountable, likely along the lines used in the UK where Governor Carey has to write a letter to the Chancellor of the Exchequer if inflation is 1% above or below the BoE target (2%).
Posting this as info only.
This is not Lowe, but it looks like him. Bonus points if you can name the music vid its from …. the foirst part is Lowe's day at the office :-D