Government Eyes Bipartisan Support for RBA Reform Amid Fears of Board ‘Stacking’

Treasurer Jim Chalmers has opened the door for possible alterations to how the Reserve Bank of Australia (RBA) will be reformed to ensure smooth passage through Parliament.

The proposed bill seeks to create two RBA boards instead of one: a board to make interest rate decisions, and the other to take care of corporate governance.

Those on the interest rate board will have an expanded role, including regular speech to discuss decisions.

They will also have fresh selection criteria, prioritising a range of expertise, which a previous review said was lacking under current arrangements.

The government, however, was open to limiting Parliament’s ability to override the RBA in emergencies, ensure current RBA board members are offered positions on the newly created Monetary Policy Board, and maintain continuity across both the Monetary and Governance Boards.

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