The Reserve Bank of Australia (RBA) is 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:
Treasurer Chalmers also said the government would institute a more transparent process for appointing external members to the RBA boards.