Inflation has been the word on a lot of Australians lips of
late. Consistent interest rate hikes have hurt a lot of households and had
people asking what was the reserve bank doing that would allow a series of
hikes that have hit Australians hard. 

Well it seems there is some changes coming with Reserve
Bank of Australia (RBA) set for a shake-up, following a review commissioned
by the federal government.

The review made 51 recommendations, including specific
measures to create a clearer monetary policy framework and stronger
monetary policy decision-making.

Treasurer Jim Chalmers said the government agreed
in-principle with all the recommendations and would work with the RBA and
parliament to implement them.

Subject to consultations with the opposition, the Treasurer
said the government would introduce legislation to:

·        
Reinforce
the independence of the RBA in the operation of monetary policy

·        
Split
the RBA board into two – with one board to oversee monetary policy and the
other governance

·        
Strengthen
the RBA’s mandate

·        
Clarify
that Australia’s monetary policy framework will aim for both price
stability and full employment

Treasurer Chalmers also said the government would institute
a more transparent process for appointing external members to the RBA
boards.