Australia Launches Review of Central Bank

SYDNEY—Australia said it would review its central bank, including whether a focus on targeting inflation is fit for purpose, after officials faced widespread criticism for responding too slowly to worsening price pressures.

The review of the Reserve Bank of Australia, the first since the 1990s, could also lead to a change in the way the bank communicates with markets and prompt a shake-up of its board where a majority of its nine members aren’t economists.