“We have launched a number of new initiatives to increase our engagement with the economics and policy community,” Hunter said. “These are aimed at strengthening our ties to academia, think tanks and the broader economic community to help us test our thinking, and bring in new cutting-edge knowledge and capabilities.” The RBA’s 2026 Annual Conference will focus on the topic of trade-offs, bringing world-leading academics and policymakers to discuss these issues. Hunter also revealed that the RBA is developing scenario-analysis tools to better simulate the impacts of simultaneous shocks, such as a commodity price spike combined with a trade disruption, which have historically been difficult to model using standard frameworks.
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The implications of more frequent supply shocks extend beyond monetary policy. Government fiscal policy, trade negotiations and energy planning must all adapt to a world where the economic landscape can shift abruptly. Hunter suggested that Australia’s relatively open economy makes it particularly sensitive to global disruptions, but also provides opportunities to diversify trade partners and strengthen domestic supply chains. She pointed to the government’s recent trade agreements with India and the United Kingdom as examples of proactive diversification. The RBA’s research agenda will continue to explore how productivity and investment respond to repeated shocks, and whether businesses are adjusting their risk management strategies accordingly.
As the RBA prepares for its next interest rate meeting in August, Hunter’s remarks serve as a reminder that the central bank is not just reacting to current data but also preparing for an uncertain future. The board’s decisions will be informed by a deeper understanding of how global events transmit to the Australian economy. Hunter concluded her speech by emphasising that while the challenges are significant, the RBA is committed to maintaining price stability and supporting full employment, even in the face of a more volatile world. Her measured tone reflected the central bank’s determination to stay ahead of the curve through investment in expertise and analytical capacity.
