SYDNEY (Reuters) – Australia’s central bank has barred Canadian global investment bank from providing confidential briefings after one of its clients leaked details from a closed briefing, two sources familiar with the matter said on Tuesday.
This is the second example of a leak after the Reserve Bank of Australia (RBA) was criticized last year when Governor Philip Lowe briefed traders at a private meeting hosted by Barrenjoey Capital Partners, after the central bank surprised markets with a hawkish outlook on interest rates. .
Assistant Governor Christopher Kent met with economists and trading clients at RBC Capital Markets, the investment banking arm of Royal Bank of Canada, in February after the Reserve Bank of Australia kept the interest rate steady at 4.35%, two sources told Reuters. The sources did not want to reveal their identity because the discussions were private.
After the meeting, RBC Capital Markets’ trading client shared what Kent said at the press conference with an external partner, the sources said.
When RBC discovered the leak, it proactively disclosed the information to the Reserve Bank of Australia, and the central bank imposed a 12-month ban on RBC over the hack, one of the sources said.
RBC Capital Markets and the Reserve Bank of Australia declined to comment on the matter.
The story was first reported by Australia’s Financial Review on Tuesday.
Michelle Bullock took over as RBA governor from Lowe in September last year. Lowe joined the Barrenjoey board last month.
When Australian Treasurer Jim Chalmers was asked about the issue, he said it was not the government’s role to manage or monitor agreements between the Reserve Bank and commercial banks.
“But I share the concern…that some elements of confidentiality may be breached, and I’m sure our colleagues at the bank are working to understand what that means for the way they manage those briefings and who participates in them.” Chalmers told reporters at a news conference in Canberra.