Both Labor and the Coalition went to the election promising an independent review of the RBA in the wake ofa series byThe Sydney Morning Herald andThe Age into the bank,its setting of interest rates over recent years,its board composition and how monetary policy interacts with budget settings.
The bank has come under criticism from academic economists for its handling of interest rates before the COVID-19 pandemic,as well as its monetary policy settings through the recent recession.
The review,the first of the bank since the early 1980s,is likely to start either next month or by early August. It would run for about 12 months.
Chalmers said the review would look at the RBA board including its number of members,currently nine,and their experience and background.
“There’s been a welcome conversation,about whether or not the Reserve Bank board is broad enough,representative enough,whether it’s the right size,” he told the ABC’sInsiders program.
“When I announce the terms of reference for the Reserve Bank review,I think one of the key considerations should be board representation,whether it’s broad enough,in geographic terms and gender and all the important considerations,but also make sure that the right voices are represented around the table,the board is of the right composition and size.”