Former Reserve Bank governor Bernie Fraser has defended the central bank's actions during the coronavirus pandemic following a scathing attack by ex-Prime Minister Paul Keating | JennieDuke swrighteconomy
Former Reserve Bank governor Bernie Fraser has defended the central bank's actions during the coronavirus pandemic following a scathing attack by ex-Prime Minister Paul Keating on monetary policy decisions aimed at keeping the economy afloat.
"I've been happy to see the bank express views about the need for fiscal policy and investment in infrastructure and so on because that's basically what it's all about. It's fiscal policy that has to [step in] ... the bank can't do any more other than to keep liquidity there." Mr Frydenberg raised concerns about the motive for the comments, saying two weeks ago the RBA had pointed out a trade-off between a higher superannuation guarantee and wage growth. Mr Keating has defended a legislated increase in the super guarantee to 12 per cent by 2025 and criticised the government for trying to destroy the system.
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