Reserve Bank Of Australia - Board Members (Monetary Policy And Governance Board)

The Reserve Bank of Australia (RBA) is Australia’s central bank and derives its functions and powers from the Reserve Bank Act 1959 (the Act). The overarching objective of the Bank is to promote the economic prosperity and welfare of the people of Australia both now and into the future.

Subject to the passage of legislation titled The Treasury Laws Amendment (Reserve Bank Reforms) Bill 2023 currently before the Parliament, the RBA will have two new boards:

•               a new Monetary Policy Board, with responsibility for the Monetary Policy of the RBA and the Bank’s contribution to the stability of the Australian financial system

•               a new Governance Board, with responsibility for overseeing the management and organisational affairs of the RBA, delivering banking and banknote services, and determining policies in relation to any other matters not covered by the Monetary Policy Board and Payments System Board.

Under the proposed legislation, the new Boards will be established on the later of 1 July 2024, or around three months after the changes receive Royal Assent.

These Boards will work constructively with the current Payments System Board, which is responsible for the payments system policy of the RBA under the Payment Systems (Regulation) Act 1998 and the Payment Systems and Netting Act 1998.

The Statement on the Conduct of Monetary Policy (the Statement) records the common understanding of the Reserve Bank Board and Government on key aspects of Australia's monetary and central banking policy framework. A revised Statement will be agreed between the new Monetary Policy Board and the Government after 1 July 2024.

Subject to the passage of legislation, the Monetary Policy Board will comprise nine members: the Governor (who is Chair), the Deputy Governor (who is Deputy Chair), the Secretary to the Treasury, and six external (non‑executive) members.

Subject to the passage of legislation, the Governance Board will comprise nine members: the Governor, the Deputy Governor, a senior member of the Reserve Bank Service, and six external members. The Chair of the Governance Board may be any member of the Governance Board, as appointed by the Treasurer.

The external members of the Monetary Policy Board and Governance Board will be appointed for terms of up to five years, with the possibility of reappointment if it does not bring the total period of service to more than seven years.

Subject to the passage of legislation, the Monetary Policy Board will meet eight times each year, split across two days. Board meetings are usually held at the RBA’s Head Office in Sydney. Meetings are likely to also be held in two other Australian cities each year. In advance of decision meetings, Monetary Policy Board members will be invited to attend staff briefings. Overall, Monetary Policy Board members will be expected to dedicate around one day a week to their responsibilities, likely concentrated around the dates of meetings of the Monetary Policy Board.

Subject to the passage of legislation, the Governance Board will meet at least four times each year, or more frequently as decided by the Governance Board.

Members of both Boards will play an important role in implementing the recommendations of the recent RBA Review. Members of the Monetary Policy Board will promote transparency and accountability in their decision‑making. This includes publishing information relevant to its decisions, unattributed votes of Board members and Board papers after five years. Members will conduct at least one speech or public engagement each year. They will also convene and engage with an expert advisory group on Monetary Policy to provide the Board with a wide range of external views.

Members of the Governance Board will oversee the implementation of recommendations of the RBA Review to further strengthen the RBA’s management, culture and operations. The Governance Board will hold leaders to account for progress in delivering the recommendations of the Review, including cultural change. It will report publicly by June 2025 on the RBA’s progress in implementing the RBA Review’s recommendations and achieving its objectives. It will identify new opportunities for improvement through 5-yearly Australian Public Service capability reviews.

Further information about the RBA Review and its recommendations can be found on the website of the RBA Review.

Before starting to perform their duties, each member of a board of the RBA is required under the Act to sign a declaration of secrecy, which requires them to maintain confidentiality in relation to the affairs of the RBA.

Members must comply with the statutory obligations for officials of the RBA, including the general duties for officials set out in the Public Governance, Performance and Accountability Act 2013 (PGPA Act). Members’ obligations under the PGPA Act include, but are not limited to, obligations to exercise their powers and discharge their duties with care and diligence, honestly, in good faith and for a proper purpose. Members must not use their position, or any information obtained by virtue of their position, to benefit themselves or any other person, or to cause detriment to the RBA or any other person. They must disclose details of any material personal interest that relates to the affairs of the RBA.

In order for members of the Monetary Policy Board to discuss and decide monetary and financial stability policies, notwithstanding any material personal interest in the outcome, the Act will require members to furnish a confidential disclosure of material personal interests to the Treasurer annually and, during the year, to notify any substantial change since their most recent annual disclosure.

Members of the Monetary Policy Board will be expected to declare to the other members of the Board any material personal interests in matters relating to the affairs of the Board other than Monetary Policy and financial stability. Members may give standing notice to other members outlining the nature and extent of a material personal interest in such matters.

Codes of conduct for members of the boards supplement these statutory requirements. They impose obligations on members that are designed to ensure the highest possible standards of ethical conduct. The codes of conduct for the Reserve Bank Board and Payments System Board, which are available on the RBA’s website, provide general principles to guide the conduct of members in fulfilling their duties and responsibilities as Board members and addresses a range of matters, including conflicts of interest. For example, the Code of Conduct for current Reserve BankBoard Members covers restrictions on undertaking, or being involved in, financial transactions of certain types at certain times.

The Remuneration Tribunal determines the remuneration of Board members in accordance with section 15 of the Act.