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What is the Review and Assessment of the Formulation and Implementation of Monetary Policy? (RAFIMP)

RAFIMP is a review of how we have made decisions about monetary policy in the 5 years from 2017 to 2022 and how those decisions were brought into effect. This is the first time we did this review — after it became a legal requirement in 2018.  However, we had previously been carrying out regular reviews of monetary policy to hold ourselves accountable for our actions. 

What RAFIMP covers

RAFIMP covers the Monetary policy-makers' decisions on the Official Cash Rate (OCR). It also includes new Additional Monetary Policy (AMP) tools that were introduced during COVID-19

RAFIMP is a detailed report card on what our monetary policy-makers decided to do, what worked, what we could have done better and how we can learn from our experience.

The RAFIMP is a thorough report. It assesses decisions across 5 years —  in the context of the best available information at the time, and with the benefit of hindsight.

Peer reviews

Two international independent experts on monetary policy have peer-reviewed RAFIMP. These experts are:
  • Warwick McKibbin — Professor at the Australian National University
  • Lawrence Schembri — former Deputy Governor of the Bank of Canada.

The review process

The review first evaluates monetary policy developments during 2017 to 2022, that is, from the end-point of the previous business cycle review through 2022, by focusing on distinct economic phases within the period. This makes sure there is continuity in analysis and sets up the process for 5-yearly reviews. The review then assesses whether the MPC met their obligations as set out in the MPC’s Remit and Charter. The MPC Remit provides the MPC with its operational objectives, while the Charter outlines requirements for the MPC around transparency, accountability and decision-making procedures. 

RAFIMP and the Remit Review

The RAFIMP was separate but was carried out alongside the Remit Review.

The Remit Review is about the guidelines or framework for MPC decisions. RAFIMP is designed as a report card on what was done in the past 5 years and how effective those decisions were. 

More information about the Remit Review

The Monetary Policy Framework