Australia has launched a review of its central bank after the institution was criticised for delaying interest rate rises even as inflation took hold, prompting its own governor to describe its forecasting as “embarrassing”.
The review could result in the first significant reshaping of the Reserve Bank of Australia’s functions and purpose since the 1990s, when banking supervision was stripped out into a new body.
Australia’s Treasurer Jim Chalmers said the review would consider the performance of the central bank, its board composition and its inflation targeting strategy.
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