We can see the Reserve Bank Board taking responsibility for the macroprudential framework and scrutinising the operation of macroprudential policy by the Governor and his staff for which the Board will ultimately be responsible. As I have acknowledged earlier, macroprudential policy can produce tension with other objectives of public policy.
This reinforces the importance of consultation with the government, in line with our current practice, although there needs to be a clear boundary between consultation and decisionmaking. The Phase 2 review raised the option of assigning a formal advisory role to an interagency committee, which could be well placed to consider the potential tension between macroprudential policy and other government policies.