Monetary Policy Board Charter April 2025

1. Introduction

The Monetary Policy Board of the Reserve Bank of Australia (Bank) is established under and governed by the provisions of the Reserve Bank Act 1959. This Charter outlines the role, responsibilities and composition of the Monetary Policy Board and the way it discharges its responsibilities under the Reserve Bank Act.

2. Role, objectives and responsibilities of the Monetary Policy Board

2.1 Functions of the Monetary Policy Board

The key responsibilities of the Monetary Policy Board are:

• determining the monetary policy of the Bank in a way that, in the Board’s opinion, best contributes to price stability in Australia and the maintenance of full employment in Australia;
• determining the policy of the Bank (other than its payments system policy, as defined in the Reserve Bank Act) for contributing to the stability of Australia’s financial system; and
• promoting the proper, efficient and effective implementation of the policies determined by the Board.
• The Monetary Policy Board will, from time to time, agree with the Government and publish a Statement on the Conduct of Monetary Policy (SCMP), recording the common understanding of the Monetary Policy Board and the Government on key aspects of Australia’s monetary and central banking policy framework.

In performing its functions, the Monetary Policy Board will operate in accordance with the Reserve Bank Act, Public Governance, Performance and Accountability Act 2013 (PGPA Act), the SCMP, this Charter, relevant Bank policies and applicable legal and regulatory requirements.¹

2.2 Engagement and communication

To promote transparency and accountability in its decision-making, the Monetary Policy Board will announce and explain its monetary policy decisions and release minutes of its meetings.

The Monetary Policy Board will:

• from time to time inform the Government about the performance of its functions and the exercise of its powers, including its determination of monetary policy or financial system stability policy; and
• ensure that the Council of Financial Regulators (CFR) is informed when there are material interactions between financial stability and monetary policy, to support coordination across CFR agencies of policies to address risks to financial stability

3. Membership

The members of the Monetary Policy Board are:

• the Governor;
• the Deputy Governor;
• the Secretary to the Department of the Treasury; and
• six non-executive members appointed by the Treasurer.

The Governor is the Chair of the Monetary Policy Board. The Deputy Governor is the Deputy Chair.

The Deputy Chair is to act as the Chair during a vacancy in the office of the Governor or during any period when the Governor is absent from duty or for any reason unable to perform the duties of the office.

The Secretary to the Department of the Treasury acts on the Monetary Policy Board in their individual capacity, and not at the direction of the Treasurer.

4. Meetings

4.1 Frequency

The Monetary Policy Board meets as often as is necessary for the efficient performance of its functions and fulfilment of its responsibilities. The Chair can convene a meeting of the Monetary Policy Board at any time.

4.2 Absence from deliberations or decision

Members must comply with sections 7D and 7E of the Reserve Bank Act in relation to the disclosure of material personal interests relating to matters considered at a meeting of the Monetary Policy Board.

4.3 Quorum

A quorum for any meeting will be five members.

4.4 Conduct of meetings

Meetings of the Monetary Policy Board are conducted in accordance with the Reserve Bank Act.

The Chair must preside at all meetings at which the Chair is present. If the Chair is not present at a meeting, the Deputy Chair presides.²

A question arising at a meeting of the Monetary Policy Board is to be determined by a majority of the votes of the members present and voting. The person presiding at the meeting has a deliberative vote and, if the votes are equal, a casting vote.

Meetings may be held, and members may participate in meetings, by any means of communication considered appropriate by the Chair. A member who participates in any way considered appropriate by the Chair is taken to be present at the meeting and to form part of the quorum.

Members of management may attend Monetary Policy Board meetings at the Board’s request to provide information within their areas of responsibility.

4.5 Decisions without a meeting

The Monetary Policy Board may, in accordance with section 25AU of the Reserve Bank Act, make decisions without meeting if:

• a majority of the members of the Board entitled to vote on the proposed decision provide written notice (including via electronic means) signifying that they approve the resolution in question;
• that majority would have constituted a quorum had the resolution been considered at a meeting of the Board; and
• all the members of the Board were informed of the proposed decision, or reasonable efforts were made to inform all of the members of the Board of the proposed decision.

A member of the Board is not entitled to vote on a proposed decision if the member would not have been entitled to vote on that proposal if the matter had been considered at a meeting of the Board.

The resolution is passed when the last of the members who constitute the majority provides written notice of their approval.

4.6 Leave of absence

The Monetary Policy Board may grant leave of absence to any of the six non-executive members appointed by the Treasurer, on the terms and conditions that the Board determines.

The Secretary to the Department of the Treasury may, in accordance with section 25AS of the Reserve Bank Act, nominate in writing an SES employee or acting SES employee in the Department to attend a particular meeting, or all meetings, of the Monetary Policy Board at which the Secretary is not present.

5. Role and responsibilities of Governor

Consistent with section 12(2) of the Reserve Bank Act, the Governor’s responsibility for the day-to-day management of the Bank includes implementing the policies set by the Monetary Policy Board. The Governor must implement those policies in a manner consistent with any directions as to implementation that may be provided by the Monetary Policy Board.

The Governor also acts as primary spokesperson for, and representative of, the Monetary Policy Board and is responsible for communicating the decisions and reasoning of the Board.

The Governor is responsible for ensuring the timely preparation, presentation, adequacy and integrity of information provided to the Monetary Policy Board, to enable the Board to fulfill its responsibilities.

6. Role and responsibilities of Secretary

The Bank’s Secretary is accountable to the Monetary Policy Board, through the Chair, on matters relating to the proper functioning of the Board. All members have direct access to the Bank’s Secretary.

7. Access, reliance and advice

The Monetary Policy Board has free and unfettered access to information, senior management and any other relevant internal and external party. It may make any enquiries to fulfil its responsibilities.

The six non-executive members appointed by the Treasurer have direct access to Bank staff for support on technical matters and additional analysis when requested and support in preparing for external engagements related to their role on the Monetary Policy Board.

The Monetary Policy Board may obtain independent advice at the Bank’s expense. This includes by engaging and receiving advice and recommendations from appropriate independent experts. The engagement and any advice received will be independent of management but will require the prior approval of the Chair unless the Chair has a conflict of interest or obtaining that approval is not reasonably practicable in the relevant circumstances.

Monetary Policy Board members are entitled to rely on information, advice and assurances provided by management on matters within their responsibility, and on the expertise of independent experts, provided they are not aware of any grounds that would make such reliance inappropriate.

8. Board performance and Charter review

The Monetary Policy Board assesses its performance and the fulfilment of its responsibilities under this Charter annually.

The Monetary Policy Board reviews the adequacy of this Charter every two years, or as required.

The Bank’s Secretary administers this Charter.