Reserve Bank governor Michele Bullock has reiterated her support for the raft of changes recommended in last year’s review of the RBA, including the establishment of a governance board separate from a monetary policy board.
“I am the [sole] accountable authority” Bullock said in her media conference yesterday following this week’s meeting of the RBA board and decision on monetary policy, which, as expected, left the cash rate target unchanged at 4.35 per cent.
“I could use assistance” on governance, Bullock said.
The formation of separate governance and monetary policy boards faces a stalemate in the Senate, with the Coalition demanding the appointment of all current RBA board members to the monetary policy board and the Greens demanding the Treasurer, Jim Chalmers, exercise his powers under section 11 of the Reserve Bank of Australia Act to compel an easing in monetary policy.
Thus, for the time being, and perhaps the remaining life of this parliament, it seems likely the 14 of the 55 recommendations dependent on legislative change will stall.
The influence of the RBA Review internally remains profound, Bullock made clear.
“We’ve made a lot of internal changes” she said.
“We’ve completely changed the board papers [and] completely changed our internal processes.”
Bullock made clear that, at this week’s board meeting at least, there had been no discussion of s11.
“These powers have never been used.”