The Coalition is likely to support much of the legislation as the major parties seek to avoid any minor party tinkering,but there are concerns within the Liberal Party about government appointments to the boards that will oversee both the bank and monetary policy.
The review of the Reserve Bank,released in April,recommended sweeping changes to the institution,which,unlike its overseas peers,had not undergone an independent evaluation since the early 1980s.
The biggest single change will be the creation of a board that will set official interest rates,while a governance board will oversee the RBA’s day-to-day operations. Half of the Reserve’s 1575 staff are involved in operations,such as the nation’s payment system,rather than economists and analysts.
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The review argued a separate monetary policy board would bring Australia into line with world’s best practice and enable its members to focus more intently on the state of the economy and interest rate settings.
The RBA practice of meeting monthly,which is unlike almost every other major central bank in the world,will be replaced with a move to eight,two-day meetings a year.
RBA governor Michele Bullock revealed this week the meetings,beginning in February,would start on Monday afternoon with staff presentations and an extended discussion on the outlook for the economy.