(Bloomberg) — Australia’s central bank is unlikely to name dissenting board members under its new monetary policy committee regime as it tries to limit the amount of “noise” around interest rate decisions, according to Deputy Governor Andrew Hauser.
Most Read from Bloomberg
Public speeches by members will also probably represent the board’s assessment rather than the individual’s view, the Reserve Bank’s No. 2 official told a parliamentary panel in Canberra on Thursday.
Formal discussions around the publication of board votes will only start at the RBA’s next two-day meeting beginning March 31, Hauser said. Any changes will then be codified in the Statement on the Conduct of Monetary Policy that’s agreed between the treasurer and the board, he added.
The moves are part of the central bank’s response to an independent review that recommended a sweeping overhaul of the institution. This included reducing the number of policy meetings, shifting to a dual board structure, improving communications and boosting transparency. Some changes, such as regular press conferences and fewer meetings, are already in place.
Others required legislative underpinning and had to wait until the relevant bills passed parliament, which they finally did in November after many delays.
Asked what options were being considered when it came to public disclosure of votes, Hauser highlighted the approaches of other central banks. He placed the Bank of England — his former employer — at one end of the spectrum given it revealed individual votes and the RBA at the other given it aimed for consensus.
“I think it personally very unlikely that we would get to a position like the Bank of England,” Hauser said. Its approach results in every individual feeling “that they had to explain why they took the views that they did.”
The deputy governor acknowledged he was “slightly front-running” the discussion, but said he thought the RBA’s approach “would be to present a range of possible alternatives, including when one talks about public engagements.”
He pointed out that public appearances could include interactions with firms and schools, referring to engagements he undertook earlier this week in Melbourne and Hobart.
Hauser repeatedly emphasized that it was important for the RBA to explain why a particular decision was taken and focus on the substance of the economic disagreement rather than the individuals involved, because it didn’t want to “add noise” to the outcome.
Story Continues
