Climate change and central banks
A 2023 Sir Leslie Melville public lecture presented by Michele Bullock, Deputy Governor of the Reserve Bank of Australia.
Hosted by The Australian National University Research School of Economics.
In her last speech as Deputy Governor of the RBA, Michele discusses the RBA’s work on climate change and the transition to net zero emissions, recognising the range of implications for the economy, the financial system, and society more broadly.
The RBA’s work includes understanding how more frequent, severe, or protracted weather events and the global transition to net zero emissions will affect variables key to the setting of monetary policy, such as inflation, output and the neutral interest rate. The RBA also has a role in monitoring how climate change affects financial stability, partly through its impact on banks and insurers. Furthermore, as a member of the Council of Financial Regulators, the RBA supports the development of frameworks that enable financial markets to manage climate risks and opportunities.