The RBA board will be stripped of its power to set interest rates under the biggest shake-up to Australia's economic policy settings in a generation
Anger over the bank has intensified since then after the RBA started tightening monetary policy in May last year, having earlier signalled it wouldChalmers will announce in-principle agreement with all 51 recommendations made by the review panel made up of international monetary policy expert Carolyn Wilkins, who sits on the Bank of England’s financial policy committee; the interim director of the Crawford School at the Australian National University, Renee Fry-McKibbin; and the secretary for...
Most central banks have moved to separate monetary policy committees while the operation of the bank itself is left to the governor or a board of directors similar to a private company. Shadow treasurer Angus Taylor, who has held his own briefings with the review panel, received a copy of the report earlier in the week.“It is essential the review’s recommendations are agreeable for both major parties. This will ensure certainty around the outcome of this review. With inflation at its highest level in decades, this in the best interests of Australians,” he said.
At present, governor Philip Lowe – whose seven-year term is due to end in September – and deputy Michelle Bullock have prime responsibility for outlining the bank’s view on interest rates. Moving to a specialist committee would enable members to outline their own perspectives on the economy and monetary policy.
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