Economist Advocating RBA Transparency on Interest Rates Joins Board
Independent economist Bruce Preston, known for advocating the need for transparency in the Reserve Bank of Australia’s (RBA) interest rate decisions, has been appointed to the RBA’s interest rate setting committee. His term begins on March 1, 2026.
Appointment of a New Board Member
Treasurer Jim Chalmers announced Preston’s appointment, emphasizing his extensive background in macroeconomics. Preston is currently a professor of economics at the University of New South Wales. He will replace Alison Watkins, who has served on the RBA board since 2020.
Background of Bruce Preston
- Former economist at the RBA in the mid-1990s.
- Consultant to the federal Treasury.
- Previous positions at Monash and Melbourne universities.
Chalmers highlighted Preston’s reputation and experience, affirming that he will contribute positively to the RBA’s crucial role in shaping Australia’s monetary policy.
Expertise in Monetary Policy
Bruce Preston is recognized for his extensive research on monetary policy and economics, with a career spanning three decades. In 2020, he authored a paper advocating for essential reforms in the RBA’s communication practices to enhance its accountability and effectiveness.
This paper played a role in prompting a review of the RBA, which subsequently led to significant updates in its communication strategy, such as press conferences held by the board governor, Michele Bullock.
Current RBA Dynamics
Preston’s addition brings the number of trained economists on the nine-member RBA committee to eight. Recently, the bank raised the cash rate to 3.85%. Financial experts do not anticipate further increases until June 2026.
In addition to Preston’s appointment, economist Ian Harper’s term on the board is set to conclude in August 2026, marking another significant change in the Reserve Bank’s leadership.
The RBA is working to ensure that the committee possesses the appropriate blend of skills to tackle the economic challenges facing Australia.
