Aussie central bank keeps 2% to 3% inflation target

Treasurer Jim Chalmers and the RBA said interest rate decisions would be made by a new Monetary Policy Board. — Reuters

SYDNEY: Australia’s government has outlined a new policy structure of the country’s central bank in its biggest shake-up in three decades, with its flexible inflation target of 2% to 3% remaining front and centre.

In a joint statement, Treasurer Jim Chalmers and the Reserve Bank of Australia (RBA) said interest rate decisions would be made by a new Monetary Policy Board (MPB) comprising the RBA governor, deputy governor, the secretary to the treasury and six external members.