the challenge. thank you for listening. i look forward to your questions. endnotes [ * ] i would like to thank lynne cockerell, judy hitchen, callum hudson and david norman for assistance with this speech. bullock m ( 2023 ), ‘ monetary policy in australia : complementarities and trade - offs ’, speech at the commonwealth bank global markets conference, sydney, 24 october. the rate of underutilisation captures both the share of the labour force that is unemployed and the share that is employed but working fewer hours than they desire. r e s e r v e b a n k o f au s t r a l i a

time to make some comments about this important project. a key point in the innovation review process was the industry roundtable held in 2012, focusing on the familiar themes of payments system gaps, governance and architecture. my recollection of the discussion was that there was fairly widespread acceptance that the industry would need to find a way to make some bold decisions about cooperative investments in payments system infrastructure not too far down the track. this has been echoed in subsequent views expressed by some of the key players. the reserve bank agreed. the payments system board has seen its own role as acting as a catalyst for that cooperative investment. in the conclusions to the innovation review, the board announced its intention periodically to set some strategic objectives or general goals in terms of the services that the payments system should be able to provide to end users. the five strategic objectives that the board set in 2012, after lengthy consultation and with, i think it can be said, a wide consensus within the industry, were as follows : • all direct entry payments to be settled on a “ same day ” basis • the ability to make retail payments in real - time • the ability to make and receive payments outside of normal banking hours • the ability for payments to carry more complete remittance information • the ability for payments to be addressed in a simpler way than using a bsb and account number. the first of these, the same - day settlement of direct entry payments, was achieved in 2013. it is therefore now possible for recipient financial institutions to make funds available to their customers sooner, without incurring credit risk. the bank worked closely with the industry to facilitate same - day settlement, including the introduction of new liquidity arrangements for exchange settlement accounts at the reserve bank. these new liquidity arrangements will also be important as the industry moves to meet the other four objectives from the innovation review. on those other objectives, the payments system board set out a proposed timeframe. it also offered one piece of guidance, namely the suggestion that it would be desirable to have all payments system participants connecting to a central hub or hub - like arrangement in any new payments infrastructure, as opposed to continuing with the numerous bilateral linkages that have proved to be not particularly conducive to either innovation or competition. beyond that, the board did not seek to dictate particular technical details of the solution, accepting that the industry itself should provide the roadmap to the agreed destination. one initial concern was that industry participants might respond with a number of separate