Treasurer Jim Chalmers. Source: AAP / Jono Searle
Federal Treasurer Jim Chalmers denies the review into the Reserve Bank is a witch hunt. An independent review, conducted by a three-member panel, will be conducted into the central bank- the first such review since the 1980s. Amongst the topics for the review will be whether the bank's current inflation-targeting framework is appropriate. Since the mid-1990s, the Reserve Bank has tried to keep inflation between two and three percent over the course of the economic cycle, and it is this policy that has caused them raise interest rates sharply recently. The review will report back, with recommendations, by March of next year.
