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John Kehoe

We will all pay the price for RBA board reform failure

More expertise on the central bank’s board could help avoid an unfortunate repeat of Philip Lowe’s pandemic-era guidance that interest rates were not expected to rise until 2024.

John KehoeEconomics editor

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It’s a shame that the proposed dual board structure for the Reserve Bank of Australia has fallen victim to the pre-election politicking over inflation and interest rates.

A specialist monetary policy board with expertise in economics and financial markets could enhance crucial decisions on interest rates and other emergency measures, particularly during future crises when big calls need to be made in the national interest.

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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 election. He joined the Financial Review in 2008 from Treasury. Connect with John on Twitter. Email John at jkehoe@afr.com

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    Original URL: https://www.afr.com/policy/economy/we-will-all-pay-the-price-for-rba-board-reform-failure-20240910-p5k9ay