Pressure to review Reserve Bank's inflation target as OECD warns central bank for prepare for post-COVID climate change shock - Monday Finance with Peter Ryan

Calls are growing louder for a review of the Reserve Bank's monetary policy settings and whether inflation targeting is appropriate for dealing with any future shock such as climate change. 

Former Reserve Bank board member Professor Warwick McKibbin has backed the OECD's recommendation to review the current 2 to 3 percent inflation target and the selection of external members of the RBA board.

Professor McKibbin tells me that once the COVID crisis eases, the RBA's monetary policy settings will needed to be refined to manage fallout from climate change as big emitters race to meet the 2050 net zero target.