RBA deputy governor denies pressuring rate setting board

The Reserve Bank of Australia Deputy Governor Andrew Hauser has rejected claims that his public commentary was intended to influence board members ahead of the bank's decision to raise interest rates to an 18-year high via a 6–3 vote.

Reports indicated that external members of the nine-person monetary policy board felt that public statements by Hauser and Assistant Governor Sarah Hunter infringed on board independence and created an impression that the rate decision was preordained.

“There was no attempt to do ‘open mouth operations’ for the market in my comments,” said RBA Deputy Governor Andrew Hauser.

Following Hauser's October speech noting a deteriorating inflation outlook, financial markets reassessed the probability of a rate hike from approximately 20% up to 80% after official inflation data was released.

Hauser stated that the public appearances were meant to foster public trust and clarify the bank's response strategy to changing economic data rather than provide explicit forward guidance on future interest rate movements.

The public engagement strategy adopted by the central bank follows key recommendations from a 2022 independent review commissioned by Federal Treasurer Jim Chalmers to improve institutional transparency.

Former central bank officials and market economists remain divided over the communication approach, with some advocating for greater debate in public while others caution that executive speeches risk boxing in the board's decision-making process.