The BoC charged a former deputy with looking at monetary policy.
Carolyn Wilkins was a senior deputy governor of the Bank of Canada.
The photo was taken by Blair Gable.
Carolyn Wilkins, a former Bank of Canada senior deputy governor, has been tapped by the Australian government to conduct a review of the Reserve Bank of Australia.
Wilkins is an external member of the Financial Policy Committee at the Bank of England.
The Reserve Bank of Australia came under fire for not anticipating a surge in inflation. The governor of the Reserve Bank of Australia called the miss an embarrassment.
Australia is facing a range of long-term economic challenges and is facing a complex and rapidly changing economic environment. Ensuring that our monetary policy framework is the best it can be to make the right calls in the interests of the Australian people is an important opportunity.
The central bank's mandate, monetary, fiscal and macroprudential policies, and its governance, culture, operations and more will be scrutinized by outside experts.
A final report with recommendations to the government will be produced by the review.
Wilkins is joined by Renée Fry McKibbin, who is the interim director of the Crawford School of Public Policy at the Australian National University, and Gordon de Brouwer, the Australian economist and secretary for public sector reform. The team will be supported by other people.
According to the Australian Bureau of Statistics, Australia's consumer price index hit 5.1 per cent in the March 2022. The increase in underlying inflation was the highest since March 2009.
The Reserve Bank of Australia said it intended to keep its policy rate low until at least 2024. The cash rate, which determines interest rates for overnight loans between financial institutions, had been kept at a historic low.
The rate was raised twice to 1.35 per cent, the most recent increase being a 50-basis-point hike in July. According to the meeting's minutes, the central bank still sees the need for further policy tightening.
Wilkins worked at the Bank of Canada for three years. She led the internal review of the Bank of Canada's inflation-targeting regime, which tested the two-per-cent target against a number of other approaches to setting interest rates. The Bank of Canada and the federal government decided to stay the course.
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