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Jim Chalmers has announced the terms of reference of a review of the Reserve Bank of Australia, which will include examining whether changes are needed to the bank’s inflation targets.

It is the first review of the bank since the monetary policy arrangements were set up in the 1990s and will report to government with “clear recommendations” by March.

The review will be lead by three independent experts: Prof Carolyn Wilkins, a former deputy governor to the Bank of Canada; Prof Renee Fry-McKibbin, a leading macroeconomists at the Australian National University; and Dr Gordon de Brouwer, secretary for public sector reform and a long-serving senior public servant.

Chalmers said the review fulfilled the government’s commitment to conduct a broad-based review of how monetary policy was managed in Australia:

This is an important opportunity to ensure that our monetary policy framework is the best it can be, to make the right calls in the interests of the Australian people and their economy.

The review will call for public submissions, and will consider the “RBA’s objectives, mandate, the interaction between monetary, fiscal and macroprudential policy, its governance, culture, operations, and more”.

It will also assess the “continued appropriateness of the inflation targeting framework” of the bank, which is set at between 2% and 3%, and which drives the bank’s cash rate decisions.

It will consider the interaction of monetary policy with fiscal and macroprudential policy, “including during crises and when monetary policy space is limited.”

According to the terms of reference, the panel will also assess the RBA’s “performance in meeting its objectives, including its choice of policy tools, policy implementation, policy communication, and how trade-offs between different objectives have been managed”.

The RBA has faced criticism for a series of rapid increases to the cash rate to try to curb inflation, after previously indicating rates would remain steady until 2024.