The Coalition will block Treasurer Jim Chalmers’ attempt to create a new specialist interest rate-setting board at the Reserve Bank over concerns the government could stack the committee with Labor-aligned figures after he accused the central bank of “smashing the economy”.
The decision means Dr Chalmers’ efforts to complete an overhaul of the central bank are all-but-dead unless the government accedes to shadow treasurer Angus Taylor’s demand that all existing RBA board members retain their role setting interest rates, without exception.
Loading...
Michael Read is the Financial Review's economics correspondent, reporting from the federal press gallery at Parliament House. He was previously an economist at the Reserve Bank of Australia and at UBS. Connect with Michael on Twitter. Email Michael at michael.read@afr.com
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
