"The Board places a high priority on a return to full employment."
The next step will be to include this in the agreement with the Treasurer, preferably with a numerical estimate.
Unemployment should have equal status with inflation.
rba.gov.au/media-releases… 1/3
Being explicit about the dual mandate is clear and honest.
It would bring the agreement with the Treasurer into line with the Act.
It is state-of-the-art central banking. 2/3
It would also replace the RBA's confusing vagueness about objectives "on average, over time".
When objectives clash (supply shocks) move gradually.
When objectives coincide (demand) move aggressively.
If you are explicit about the tradeoff, you don't need language about timing.
Some background:
Almost all central banks pursue dual mandates in practice.
Some, like the Fed and RBNZ, have become explicit about this. Most others still claim to target inflation.
The RBA is confused. Today's statement is clear and explicit about the full employment objective.
In contrast, the Agreement with the Treasurer prioritises inflation.
It says “an appropriate goal is to keep consumer price inflation between 2 and 3 per cent on average, over time.”
To bring the Agreement up to date, and in line with today's decision,
“on average, over time” should be replaced with
“and to keep the unemployment rate near its long-run sustainable level, which the Bank currently estimates to be around 4½ per cent.”

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