RBC barred from off-the-record briefings with Aussie central bank after leaks

financialpost.com:

The Reserve Bank of Australia is facing questions over its practice of holding off-the-record briefings with market participants after reports that at least two such discussions had been leaked, resulting in bans for the institutions involved.

The central bank excluded Royal Bank of Canada from briefings for 12 months to February 2025 after one of its clients shared information from a meeting with assistant governor Chris Kent and also banned Westpac Banking Corp. in 2023 for a similar breach. Both were first reported this week by the Australian Financial Review.

RBA officials regularly hold meetings with groups including traders, economists, businesspeople and community groups to discuss issues ranging from the state of the economy to perceptions of the central bank.

The reports come after former RBA Governor Philip Lowe drew criticism early last year when it was revealed he had attended a private lunch with investment bank Barrenjoey Capital Partners. Lowe, whose seven-year term as RBA chief ended in September 2023, joined Barrenjoey’s board last week.

The leaks are a concern for current governor Michele Bullock as she tries to improve the RBA’s communications and transparency in response to an independent review of the central bank. Bullock now holds a press conference after each policy meeting to provide more context and information about decisions, which was among changes recommended by the review.

The RBA declined to comment for this story, though its officials have previously highlighted the benefits of meeting with bankers, employer groups and others.

Stephen Miller, an investment strategist at GSFM, said the only real solution for the RBA was to abandon such briefings.

“It’s a little bit of an over-reaction but