Jim Chalmers will impose a sweeping overhaul of the Reserve Bank including creating two RBA boards – one that sets interest rates and one overseeing governance.
Treasurer Jim Chalmers will impose a sweeping overhaul of the Reserve Bank of Australia including creating two RBA boards – one that sets interest rates and another that oversees the central bank’s governance.
It is understood the three independent reviewers recommended the establishment of separate monetary policy board and governance boards to ensure decision-making and governance arrangements are as effective as they can be.The first committee would be a group specialising in setting interest rates and is expected to include experts on economics, labour markets and financial markets.
In a short statement before formally releasing the review on Thursday, Dr Chalmers said: “I thank the RBA review panel for this significant piece of work and look forward to working across the parliament and with the RBA to implement the recommendations. “It is unusual to have a single board do those two things together,” she said. “And so some people have suggested that that gets split out.
Other recommendations will require legislative change, work with the Council of Financial Regulators, or the agreement of a new statement on the conduct of monetary policy between the RBA board and the government.Canadian central banker Carolyn Wilkins, ANU economics professor Renee Fry-McKibbin and former senior Treasury official Gordon de Brouwer.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
The biggest shake-up in a generation: RBA board to lose rate setting powersThe review of the RBA calls for the governor to front a press conference after meetings to publicly explain why the bank has moved interest rates.
Read more »
Chalmers says ‘no’ to $34b for welfare, aged care’s $5b blowoutThe government has hosed down demands for big new spending in welfare as it revealed the aged care budget was on track to blow out by nearly $5 billion this year alone.
Read more »
‘Lucky Chalmers’: Higher than expected commodity prices show improved budget bottom lineSky News Political Editor Andrew Clennell says the last few budgets have contained much lower commodity price forecasts than what have actually ended up occurring, meaning each year the “budget bottom line has improved”. “These are the prices that were assumed again last October – US$55 a tonne for iron ore when the spot price at budget time was $91,” Mr Clennell said. “Economist Chris Richardson has told me that annually the benefit to the budget of a $10 change in the iron ore price will be $3 billion a year. “With some of the commodity prices we are going to see in this budget and the sorts of revisions up we have seen in the size of the economy in October and we’re about to see, are we going to start calling the Treasurer 'Lucky Chalmers'.”
Read more »
Timely tweets from Albanese and Chalmers resurfacesA series of old tweets from Prime Minister Anthony Albanese and Treasurer Jim Chalmers calling for a lift to the JobSeeker rate have surfaced, amid revelations their government will reject an increase that was recommended in a new report.
Read more »
Live: ASX set to slip as global markets mixed, RBA minutes aheadLocal stocks could fall despite gains on Wall Street. Meeting minutes will provide insight into the RBA's decision to pause rate hikes in April. Follow the day's events and insights from our business reporters on the ABC News live markets blog.
Read more »