The Reserve Bank of Australia has two mandates; in brief they are price stability and full employment
But ... they've now found a 3rd!
This via Bloomberg:
- there's another goal that's lesser known and somewhat less defined: the economic prosperity and welfare of the people of Australia.
- That's allowed the central bank to keep the benchmark rate at a record low 1.5 percent for 11 months as it weighs the impact of a rate move on a financially-stretched population against an array of mixed economic signals.
- The RBA's third objective "gives quite a lot of wiggle room" to policy makers, said John Edwards, an economist and visiting fellow at the Lowy Institute for International Policy who served on the central bank's board until last July. "It's a sort of a fallback."
Check it out at the Bloomberg piece, here
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This is not really new nor surprising. RBA Governors have expressed views on topics as wide-ranging as what is appropriate urban planning for Australia ... yeah they will grab "mandates" as it suits. Give 'em an inch and all that ....
"And another thing! ..."
