With the Reserve Bank expected to leave official interest rates on hold at today's monthly meeting, the debate over greater transparency of the Board's deliberations has re-emerged.
The central bank has been under pressure in recent years to release the board's minutes, and there's speculation that Reserve Bank governor Glenn Stevens might consider ending the central bank's long opposition to making them public in the new year.
However, in the past Mr Stevens has remained non-committal on the publication of minutes recently telling a gathering in Sydney that he had "an open mind" on the matter.
The possibility of a new era of transparency comes amid growing calls for a better explanation of monetary policy from market economists and an increasingly savvy general public who have withstood a raft of interest rates rises.
The RBA board only issues a statement when rates are moved up and down, but there is no comment when rates are kept on hold - which is the result widely expected for tomorrow.
The publication of board minutes would bring the RBA into line with other central banks such as the US Federal Reserve, Bank of England and the European Central Bank.
Jarrod Kerr of the investment bank JP Morgan is typical of most economists who will be "left to read the tea leaves" in the face of the silence from the RBA board tomorrow.
"We are expecting the RBA to leave rates unchanged but we won't know why," Mr Kerr said.
"We can speculate on concerns about the US economy and financial market conditions but we don't actually know what was talked about today in the RBA meeting.
"A bit more guidance from the central bank could never go astray."
HSBC's chief economist John Edwards - who advised the Labor government of Paul Keating - is keen to hear the views of the individual board members who are made up of business, economic and government figures. (see Reserve Bank website)
"I think we'd all be advantaged if we had more of an idea about the debate on the debate on the board and within the bank on how the economy might evolve," Mr Edwards said.
"That would give us a much better idea of the risks and the alternative possibilities and the way the bank is really thinking."
But Mr Edwards believes the move to publish board minutes would mean the composition of the board would have to change to include more professional economists.
"It would have to move to people who are trained in an assessment of economic conditions and the appropriate monetary policy response. Most board members are not," he said.
The new Prime Minister, Kevin Rudd, and his Treasurer Wayne Swan are both known to support changes to the Reserve Bank's communication policy.
Glenn Stevens is scheduled to address the Sydney Institute next week and is expected to update his views on communication including calls for the publication of board minutes. - Source: By Peter Ryan ABC Australia Copyright
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