Why an RBA review is a must for Australia

The Reserve Bank of Australia’s charter says that Australia’s central bank must direct policy to the “greatest advantage of the people of Australia”. It aims to do this by maintaining the stability of the currency, ensuring full employment and furthering the “economic prosperity and welfare of the people of Australia”.

Despite this essential service to the country, it’s role is rarely acknowledged apart from when it changes official interest rates – largely thanks to three decades of economic growth before last year’s recession.

But now the RBA has come under fire from leading economists and monetary policy experts who believe the bank held interest rates too high for too long ahead of the pandemic, contributing to the challenging economic circumstances the country now faces.

Today on Please Explain Nathanael Cooper and senior economics correspondent Shane Wright look at the role of the Reserve Bank of Australia and calls for a review into its practices.

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