The Coalition welcomes the release of the Review of the Reserve Bank of Australia: “An RBA fit for the future”.
Shadow Treasurer Angus Taylor said it was enormously important Australia has an independent, credible and capable Reserve Bank.
“As the review indicates, the Reserve Bank of Australia has served Australia well for a long period of time and played a crucial role in ensuring Australia emerged from the pandemic in a position of economic strength,” Mr Taylor said.
“But with inflation at its highest level in three decades, it is essential Australians can have confidence in this crucial economic institution. This is why it’s critical the lessons of the pandemic are learned, and that the Reserve Bank has no distractions getting in the way of its core objectives.
“The recommendations of the review will clarify the Reserve Bank’s monetary policy role, strengthen its governance arrangements, improve the transparency of its decision making, and deepen its economic expertise.”
The Coalition has had regular and constructive discussions with the RBA Review Panel as it has formulated its recommendations.
The Coalition's input into this review has been centred on:
- ensuring the Reserve Bank's monetary policy approach remains laser-focussed on returning inflation to the 2-3 per cent target;
- strengthening the Reserve Bank’s consideration and research capabilities of the interaction of monetary and fiscal policy;
- enhancing the analytical rigour, public accountability, and intellectual diversity within the bank;
- ensuring any governance reforms are balanced, appropriately staged, preserve the Reserve Bank's independence and political impartiality, and bolster the Reserve Bank's capabilities;
- taking all reasonable measures to ensure the recent serious errors of guidance and forecasting are not repeated.
Mr Taylor said while the Coalition will go through its usual party processes on any legislative response, we welcome the Review’s incorporation of these proposals.
“We also welcome the report’s recommendation that the Coalition continue to be consulted on the appointment of new directors and the implementation of the review,” Mr Taylor said.
“It is essential the implementation of the review be as bipartisan as possible and it is the Coalition’s intention to continue to approach the implementation of this review with a spirit of bipartisanship.
“This will ensure Australians can maintain confidence in the Reserve Bank at a time when more and more personally feel the impact of its decisions.
“Families are feeling the impacts of higher prices and rising interest rates every day. Along with strong economic management, a strong Reserve Bank is essential to addressing the inflation that is driving higher prices.”