The RBA is getting a makeover in 2024 and shaking up the way they make monetary policy decisions.
I’m sorry, the old RBA can’t come to the phone right now. Why? Oh, because it’s dead.
The RBA is entering its new glow-up era and revamping how they make monetary policy decisions. You could say inflation’s done a serious number on them…and us.
It’s hard to imagine there was a time when many of us had likely never even heard of the RBA.
Yet, in less than two years it’s become a monthly ritual to tune in on the first Tuesday of every month for the RBA’s cash rate update.
And while we’ve just gotten used to this, things are about to look entirely different.
What’s changing with the RBA?
In the past, the RBA met 11 times a year, on the first Tuesday of every month except January.
From this year onwards, that’s dropping down to eight meetings a year, and this means the RBA crew won’t be hanging out in April, July, or October.
The RBA’s meetings are also getting longer. What used to be a few hours on a Tuesday morning will now be an intensive two-day session over a Monday and Tuesday.
But there’s no need to radically change your schedule.
The cash rate update will still be announced at 2:30pm AEST on Tuesdays, but from now on, it’ll also be followed by a 3:30pm press conference with RBA governor, Michele Bullock.
Move over Saltburn, this is prime time viewing!
When will the RBA meet this year?
For the keen beans that want the dates in their calendar, this year the RBA will be meeting on:
Why is the RBA doing a rebrand?
The RBA is typically used to working in the background, not being in the spotlight.
But with so much cash rate drama over the past two years and the material impact this has on our lives, the RBA’s capability in making the best decisions for Australia’s economic future has been brought into question.
This led the government to commission an independent review of the RBA to assess how they work and suggest ways to improve their decision making and communication.
The review suggested for the RBA to bring their meetings down from 11 to eight to give them more time to assess economic data-points like inflation, wage growth, unemployment etc. before making a decision.
So now, the RBA’s eight meetings are scheduled immediately after important economic data is released.
The other new addition to the RBA’s new vibe is the press conference, which will put the RBA closer into the public eye to increase their accountability to Australians.
But there’s even more responsibility on RBA Board Members. As part of this revamp, each RBA board member will need to give at least one public speech or “engagement” per year. This is like the introvert being forced to perform in the school play.
So while some RBA board members might deliver full speeches on monetary policies, others will likely just appear on panels at a conference in their capacity as an RBA board member.
All in all, the idea behind these changes is to give more transparency to the Australian public and more accountability placed on all RBA Board members.
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