The Reserve Bank needs inside experts to decide monetary policy and well-credentialed outsiders to help supervise a very complex organisation, writes Jonathan Kearns.
The review into the Reserve Bank of Australia will be delivered to the Treasurer by the end of this month. This is a once in a generation opportunity to ensure that this important institution has the best operating framework.The last time there were substantive changes to the RBA was in 1998, just a few years after I started my 28-year career there.
Those outsiders are drawn from the business sector and, by convention, one academic. All are exceptionally well-credentialed individuals with invaluable experience. But that experience is generally in running successful companies, and they are only committed to the RBA for a half-day board meeting and reading the briefing papers beforehand.
Yet in the RBA Act from 1959, which governs the RBA, the responsibility of all of this falls on the shoulders of just one person: the governor. The RBA, and Australia, would be much better served if all the first-rate governance experience of the people on the current board was available to oversee the strategic direction and operation of the RBA.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Mortgage holders may find relief as Reserve Bank considers revisiting rate hike decisionEconomists predict the Reserve Bank will think twice about another rate increase. However, interest rates will likely remain high well into the following year. This is one reason why Australians are tightening their belts.
Read more »
Reserve Bank will ‘respond as necessary’ to address inflationThe Assistant Governor said all Australians will benefit from the Reserve Bank’s commitment to bringing down inflation, as households continue to endure a cost of living crisis.
Read more »
Australian banks ‘unquestionably strong’ amid global uncertaintyThe Reserve Bank's Assistant Governor says Australian banks are doing much better than global counterparts and are well placed to weather another financial crisis in the aftermath of the Credit Suisse merger.
Read more »
China economy: China cuts reserve requirement ratio to boost economyThe People’s Bank of China has reduced the amount of cash almost all banks must keep in reserve in an effort to strengthen the economy’s recovery from pandemic restrictions.
Read more »
Buyers beware: Three homes beat reserve by $200,000The persistently low level of stock at auction and rising demand may have started to tilt the market in favour of sellers, according to CoreLogic.
Read more »
Millions paid in bonuses to UK Silicon Valley Bank staff days after £1 rescueWorkers reported to have received payouts from ‘modest’ pool of £15m-£20m following takeover deal by HSBC
Read more »