Australia’s central bank has barred the Canadian investment bank from participating in confidential briefings after one of its clients leaked details of a closed-door meeting, two sources with knowledge of the matter said Tuesday. the decision.
This is the second case of leak after the Reserve Bank of Australia (RBA) came under fire last year when then-Governor Philip Lowe briefed traders at a private meeting hosted by Barrenjoey Capital Partners, after the central bank surprised markets with an optimistic interest rate outlook.
Deputy Governor Christopher Kent met with economists and clients of RBC Capital Markets, the investment bank of the Royal Bank of Canada, in February after the RBA kept the bank rate at 4.35%, they said. two sources at Reuters. The sources declined to be identified because the discussions were private.
After the meeting, the RBC Capital Markets client told an outside associate what Kent had said in the briefing, the sources said.
When RBC discovered the leak, it proactively disclosed the information to the RBA, and the central bank imposed a 12-month ban on RBC for the breach, one of the sources said.
RBC Capital Markets and the RBA declined to comment on the matter.
The story was first reported by the Australian Financial Review on Tuesday.
Michele Bullock took over from Lowe as RBA governor in September last year. Mr Lowe joined the Barrenjoey board last month.
Asked about this, Australian Treasurer Jim Chalmers said it was not the government’s role to manage or control arrangements between the Reserve Bank and commercial banks.
“But I share the concern…that some elements of confidentiality may have been breached, and I’m sure our colleagues at the bank are considering what that means for the way they organize these briefings and for the people involved,” Mr Chalmers told reporters at a press conference in Canberra.
