SYDNEY (Reuters) -Australia’s central bank is aiming to refresh how its research department can include more outside expertise and deepen links between academics and policymakers, a top official said on Wednesday.
In a speech on Australia’s past and future macroeconomic research, Reserve Bank of Australia (RBA) Deputy Governor Andrew Hauser said the focus of research had to change to address the rolling back of global free trade; geopolitical uncertainty; climate change and the widescale slowdown of productivity.
“As a trading economy reliant on world markets, we have no choice but to respond,” said Hauser.
“But we can go one better: by marshalling our best brains we can turn this challenging environment to our advantage,” he added. “Drawing in our best talent, strengthening the incentives for policy-relevant research, and deepening the links between academics and policymakers.”
Hauser made no mention of current policy in the speech. The RBA stunned markets on Tuesday by holding interest rates at 3.85% when markets had fully expected a cut to 3.60%, saying more time was needed to be sure inflation was slowing.
(Reporting by Wayne Cole; Editing by Sandra Maler)
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