Dutton back RBA review despite ‘window dressing’
Peter Dutton says Labor’s overhaul of the RBA is just “window dressing” and a distraction from soaring inflation and cost-of-living pressures facing Australians.
Peter Dutton says Labor’s overhaul of the RBA is just “window dressing” and a distraction from soaring inflation and cost-of-living pressures facing Australians.
The Opposition Leader on Friday said he would support attempts by the government to make Australia’s institutions fit-for-purpose but argued the changes would not be a “magical solution” to bring down interest rates.
The comments come after Treasurer Jim Chalmers on Thursday accepted all 51 recommendations of a landmark review of the Reserve Bank which handed responsibility for interest-rate setting to a new monetary policy board of nine experts, including six external members, with a separate governance board to take over the day-to-day management of the central bank.
The changes are aimed at increasing the role of external monetary policy experts, tempering the influence of the RBA governor – who would still serve as chair of the proposed monetary policy board – and providing better support for interest rate decisions.
“We’ll support the government in modernising institutions and making sure that they’re fit for purpose,” Mr Dutton told Nine.
“But … to be honest, this is a bit of window dressing and a little bit of a distraction. The fact is that the Reserve Bank doesn’t set the inflation rate and they operate within the band and it’s going to be difficult to get back into that target band that they want inflation to be in and if they don’t, then interest rates will remain high.”
Anthony Albanese on Friday said the RBA review would help to strengthen the board’s independence and that the government would consider its recommendations in “the fullness of time”.
“What we’re doing with this review and supporting the recommendations that have been forwarded to the government, is to strengthen its independence and strengthen the way that it operates as well by having the two boards operating, one looking after the Reserve Bank and its functions, but secondly, another concentrating on monetary policy going forward,” the Prime Minister said.
Opposition Treasury spokesman Angus Taylor said the Treasurer was “jumping ahead of himself” by accepting all 51 recommendations of the review but said the Coalition would work through all the recommendations in the “spirit of bipartisanship”.
Mr Taylor said the party was disappointed by Dr Chalmers hand-picking of two new Reserve Bank board appointments – former Fair Work Commission president Iain Ross and corporate director Elana Rubin, who both started at the ACTU specialising in occupational health and safety. “(Dr Chalmers) … ignored the recruitment process, the merit-based, rigorous process that‘s laid out in the in the review,” Mr Taylor told the ABC.
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