Veteran central bankers say concerns raised by former Reserve Bank Australia boss Ian Macfarlane that an overhaul will weaken the governor’s power are only a risk if Treasurer Jim Chalmers appoints “radicals” to the board.
Former RBA director and Treasury secretary Martin Parkinson said under the model proposed by the review into the bank, governor Michele Bullock and future governors would need to convince board members of their economic arguments on monetary policy decisions.
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John Kehoe is economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s first election. He joined the Financial Review in 2008 from Treasury. Connect with John on Twitter. Email John at jkehoe@afr.com
