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As the population ages, the RBA’s interest rate policy is no longer fit for purpose

By Lisa Denny, Adjunct Associate Professor, University of Tasmania

An extensive government review of the Reserve Bank of Australia (RBA) in 2023 made 51 specific recommendations to enable “an RBA fit for the future”. But the narrow terms of reference confined the review to an economic lens.

The failure to investigate the effectiveness of monetary policy setting through a demographic lens has resulted in an RBA which is no longer fit for purpose.

The Reserve Bank…

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