RBA’s new monetary policy board needs to prove its worth
The board changes suggest Treasurer Jim Chalmers has opted for tinkering rather than a complete overhaul.
The board changes suggest Treasurer Jim Chalmers has opted for tinkering rather than a complete overhaul.
As the Reserve Bank of Australia prepares to move forward under a new dual-board structure from early next year, there’s far more at stake than meets the eye.
Next year’s federal elections will likely hinge on the economy and living costs.
While most economists are optimistic that the RBA will ease the load on homebuyers by February, money-market traders feel that won’t happen until as far away as August.
Even news that headline inflation is back within the 2-3 per cent target band won’t be enough for the RBA to cut rates.
The Reserve Bank of New Zealand lowered the official cash rate to 4.75 per cent.
The government’s push to reform the RBA’s policy-setting board is likely dead in the water, and few will mourn its passing.
Although reforming the interest-rate setting board of the RBA has stalled, a former senior manager says there’s still a good reason to reignite the process.
It’s an odd thing in a democracy that unelected central bank officials are granted unfettered economic power, however independence is viewed internationally as best practice.
Government plans to reform the Reserve Bank by introducing a dual-board system – one for setting interest rates, the other for day-to-day governance – have stalled and are in danger of being tossed out entirely.
Original URL: https://www.theaustralian.com.au/author/james-glynn