Accountability

As an independent central bank, the Reserve Bank is accountable to the Parliament for its actions. There are requirements in the Reserve Bank Act 1959 for the Bank to consult with the Australian Government. In terms of the Public Governance, Performance and Accountability Act 2013, the Governor gives its annual report to the Treasurer, for presentation to the Parliament of Australia.

The Reserve Bank seeks to enhance the community's understanding of its responsibilities and policies through a broad communications program. The primary vehicles are the media release and minutes published following Reserve Bank Board meetings, the quarterly Statement on Monetary Policy, the half-yearly Financial Stability Review, the quarterly Bulletin and the twice-yearly appearance of the Governor and senior officers before the House of Representatives Standing Committee on Economics. Speeches and presentations are other avenues through which the Bank explains its views to the community.

Boards of the Reserve Bank

In terms of the Reserve Bank Act 1959, the Bank has two Boards:

the Reserve Bank Board; and
the Payments System Board.

Accountability to Parliament

Since 1996, the Governor and senior officers have appeared twice yearly before the House of Representatives Standing Committee on Economics to report on the conduct of monetary policy and other matters falling within the responsibility of the Reserve Bank. At that time, the then Governor-designate of the Reserve Bank, Ian Macfarlane, and the then Treasurer, Peter Costello, jointly issued the first Statement on the Conduct of Monetary Policy, which clarified the respective roles and responsibilities of the Reserve Bank and the Australian Government in relation to monetary policy. Revised, though essentially unchanged, Statements were published in July 2003 and September 2006. The Statement provided for the twice-yearly appearances by the Governor before the Parliamentary Committee, which are timed to follow the publication by the Reserve Bank of its Statement on Monetary Policy. The hearing begins with an opening statement by the Governor and is followed by an extensive question and answer session. The Governor's opening statement to the Committee is published on the Bank's website and in Hansard. In December 2007, following the change of Government, a new Statement on the Conduct of Monetary Policy was jointly issued by the Treasurer, Wayne Swan, and the Governor of the Reserve Bank, Glenn Stevens. That Statement did not change the policy objectives of the Reserve Bank as outlined in the earlier Statements, but incorporated substantive amendments relating to the independence of the Reserve Bank and covering practices regarding transparency and communication. A revised Statement on the Conduct of Monetary Policy was issued following the 2010 election and the change of Government, which explicitly covered the Reserve Bank's mandate for financial stability, and again in 2013 and at the commencement of the term of the current Governor, Philip Lowe, on 18 September 2016.

The Public Governance, Performance and Accountability Act 2013 requires the Governor to prepare an annual report, for presentation to the Treasurer and tabling in Parliament (usually in September).

Consultation with Government

Section 11 of the Reserve Bank Act 1959 requires the Reserve Bank Board to inform the Australian Government from time to time of the Reserve Bank's monetary and banking policy. This occurs largely through frequent formal and informal contacts between the Governor and the Treasurer.

The Act lays down procedures which are to be followed if there is a difference of opinion between the Australian Government and the Reserve Bank Board as to whether the monetary and banking policy of the Bank is ‘directed to the greatest advantage of the people of Australia’. First, the Treasurer and the Board are to endeavour to reach agreement. If they are unable to do so, the Board is required to provide the Treasurer with a statement on the matter. The Treasurer may then submit a recommendation to the Governor-General who, with the advice of the Federal Executive Council, may determine the policy to be adopted by the Bank. The Treasurer would then inform the Reserve Bank Board of the policy so determined and the Board would be obliged to implement it. The Board would also be informed that the Government accepted responsibility for the adoption by the Bank of that policy. The Treasurer would lay before each House of Parliament a copy of the order determining the policy which was to be implemented by the Bank, together with the statement provided to the Treasurer by the Reserve Bank Board and a statement by the Government on the matter on which opinions had differed. To date this procedure has not been used.

Section 13 of Reserve Bank Act 1959 also directs that ‘the Governor and the Secretary to the Department of the Treasury shall establish a close liaison with each other and shall keep each other fully informed on all matters which jointly concern the Bank and the Department of the Treasury’.

Release of Information to Media and Public

The Reserve Bank produces a wide range of publications, as described below. All of these publications are available on this website.

Media Releases

The Reserve Bank issues a wide range of media releases on a regular basis, containing information to assist financial markets carry out their normal activities and to inform the broader economic community. Decisions regarding monetary policy are made by the Reserve Bank Board and explained in a media release announcing the decision at 2.30 pm after each Board meeting. (Prior to December 2007, media releases were issued only when the cash rate target was changed.)

For further details, refer to Media Releases.

Publications

Minutes of the monetary policy meetings of the Reserve Bank Board are published two weeks after each meeting.

The Reserve Bank publishes two annual reports each year (usually in September or October): the Reserve Bank of Australia Annual Report and the Payments System Board Annual Report.

The other major publications are the Reserve Bank of Australia Bulletin, the Statement on Monetary Policy and the Financial Stability Review. The Bulletin, which is issued quarterly, contains articles that discuss economic and financial issues and developments as well as the Bank's operations. The quarterly Statement on Monetary Policy sets out the Bank's assessment of current economic conditions, both domestic and international, along with the outlook for Australian inflation and output growth. A number of boxes on topics of special interest are also published. The half-yearly Financial Stability Review provides the Bank's assessment of the current condition of the financial system and potential risks to financial stability. It contains a number of boxes on topics of special interest, along with occasional articles.

The Bank's other publications include:

Papers (by academics, RBA officers, and others) presented at its annual conference and workshops
Research Discussion Papers which make the results of current economic research within the Reserve Bank of Australia available for discussion and comment. The views expressed in these papers are those of the authors and not necessarily those of the Reserve Bank; and
Submissions made by the Bank to committees of inquiry established by the Parliament.

For further details refer to Publications.

Freedom of Information

The right of access to documents in the possession of Australian Government agencies in terms of the Freedom of Information Act 1982 (FOI Act) applies to the Reserve Bank. However, the Reserve Bank is an exempt agency under the FOI Act in respect of documents concerning banking operations (including individual open market operations and foreign exchange dealings) and exchange control matters. For further information, see Freedom of Information.

Declarations of Material Personal Interests

Material personal interests of the Governor and Deputy Governor are published by the Reserve Bank. These declarations are made voluntarily to promote openness and accountability and are made in addition to the declarations to the Treasurer that are required in terms of the Reserve Bank Act 1959. The format of the published declarations is similar to the Register of Members' Interests for Members of the Parliament of Australia.

Governor’s Calendar of Meetings and Events

The Governor's calendar of meetings and events attended is released four times per year (one month after the end of each calendar quarter).

Register of Gifts and Benefits Received by the Governor and Deputy Governor

The Reserve Bank reports gifts and benefits received by the Governor and Deputy Governor with an estimated value above $100 on a Register, consistent with the guidance from the Australian Public Service Commission. The Register is updated at the end of each quarter.