The Reserve Bank of Australia has published an overview and initial materials from its 2026 Annual Conference on monetary policy trade-offs. The conference examined how trade fragmentation, climate change and labour market dynamics can shape the trade-offs facing central banks, as well as how those trade-offs can be measured and affected by the anchoring of inflation expectations. Research sessions considered inflationary pressures from trade fragmentation, the economic costs of climate change, wage adjustment to inflation and policymaking with imperfect central bank information. Further work explored how unanchored expectations and selective memory can contribute to de-anchoring. Senior central bankers also discussed how they manage trade-offs in practice, with a panel summary and final versions of the conference papers and discussions to be published later.
Reserve Bank of Australia conference examines monetary policy trade-offs under structural shocks and shifting inflation expectations
The Reserve Bank of Australia has published an overview and initial materials from its 2026 conference on monetary policy trade-offs. Discussions covered structural shocks, labour market and wage dynamics, imperfect information and the role of anchored inflation expectations. Final papers, discussions and a panel summary will be published later.