It makes sense to review the Reserve Bank just as we do for other critical economic and regulatory bodies, Business Council chief executive Jennifer Westacott said.
“The RBA is one of our most important economic policymaking institutions, so it makes sense to take stock and ensure it is working as well as it can be.
“Sound monetary policy is critical to delivering the stability that allows businesses make investment decisions, expand and deliver a stronger economy with better jobs.
“It is important that this review focusses clearly on the governance and policy settings of the central bank. The RBA framework has served Australia well over a long period and through many crises, so it will be crucial that we stay true to the fundamentals of our independent model.
“The terms of reference for this review will help ensure the RBA’s policy settings are fit for purpose as we confront the big economic challenges ahead.
“We welcome the international and local expertise on the independent review panel and look forward to engaging on this crucial task with them.”
