The Treasurer, Joe Hockey, has issued a joint statement with the Reserve Bank of Australia on monetary policy.
Hockey said the statement “records our agreed understanding of Australia’s monetary and central banking policy framework.” It reiterates the core place of monetary policy, the importance of the inflation target and the government’s commitment to the independence of the bank.
According to Hockey, the statement recognises “for the first time that the financial strength of the Reserve Bank is important for the credibility of its monetary and banking policy operations, and outlines the Treasurer’s role in ensuring the maintenance of a strong Reserve Bank balance sheet”.
Statement from the Treasurer, Joe Hockey.
Today I am releasing, with the Governor of the Reserve Bank of Australia, a joint Statement on the Conduct of Monetary Policy (the Statement).
The Statement records our agreed understanding of Australia’s monetary and central banking policy framework.
The Statement recognises that monetary policy is one of Australia’s core macroeconomic policy tools and its effective conduct is critical to our economic performance and prospects. [Read more…]