Australia Treasurer amends RBA reforms after opposition objections
9:22 pm Thursday, August 22nd, 2024
By Alasdair Pal
SYDNEY (Reuters) -Australia Treasurer Jim Chalmers said on Friday he was prepared to amend some proposed reforms of the Reserve Bank of Australia after objections from the opposition coalition led by the Liberal Party.
An independent review of the central bank last year made a number of recommendations, including the splitting of the RBA board into two, one to set monetary policy and a second focusing on operations.
The review had recommended setting up a nine-member rate board with six outside members, which the opposition said could be used by the ruling Labor Party to include appointees friendly towards the current government.
Chalmers said he was now prepared to move all six current external members of the RBA board to the new rate-setting board unless they request not to, after negotiations with Shadow Treasurer Angus Taylor.
Chalmers said he would also amend a proposal to remove the government’s veto power of the RBA, allowing it to do so only in emergency situations.
“I want these changes to be above and beyond partisan politics. I want them to be bipartisan, and that’s what’s driven me at every stage,” Chalmers told a press conference on Friday.
A number of other smaller issues were being worked through with Taylor, Chalmers said.
The RBA has already adopted some of the recommendations from the review, including having fewer but longer policy meetings and holding a media conference after each decision. However, it is undecided on others, including having all board members making regular appearances to discuss their thinking on policy.
Legislation on the RBA boards’ composition was due to come into effect on July 1 but has been delayed due to lack of support from the opposition.
Chalmers said he hoped to legislate the changes through parliament by the end of the year, to take effect early next year.
(Reporting by Alasdair Pal in SydneyEditing by Praveen Menon and Shri Navaratnam)
