Dr Chalmers and shadow treasurer Angus Taylor are at odds over whether some existing RBA board members should be stripped of their interest rate setting powers.
Reserve Bank governor Michele Bullock has backed Treasurer Jim Chalmers in his fight with the Coalition over whether some existing RBA board members should be stripped of their interest rate setting powers.was the creation of separate boards for interest rate setting and governance. While the Coalition supports the recommendation in principle, the major parties are at loggerheads over which board the six current external RBA board members should serve on.
The Coalition fears the treasurer wants to use the overhaul to shift Coalition-appointed RBA board members to the governance board in a bid to add Labor-aligned figures to the more powerful monetary policy committee. “Further, the nature of the legislation gives the Treasurer the flexibility to appoint members to both boards concurrently,” Mr Taylor added.Dr Chalmers has sought Coalition support for the RBA reform legislation, given his stated preference not to negotiate with the Greens on what he hopes will be a bipartisan package.
The RBA wrote in its submission to a Senate inquiry in February that it would like “a high degree of continuity of membership” on the monetary policy board during 2024 and 2025, suggesting a preference for only about one or two existing RBA board members to shift to the new governance board.
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