Already a subscriber?Treasurer Jim Chalmers has rejected a Coalition demand that he appoint all existing RBA board members to the new interest-rate setting board, leaving Senate support for the government’s overhaul of the central bank in doubt.was the creation of separate boards for interest rate setting and governance. While the Coalition supports the recommendation in principle, the major parties are at loggerheads over which board the six current external RBA board members should serve on.
The Coalition is also concerned that shifting multiple board members to the governance board could change the direction of monetary policy at a pivotal moment in the most rapid tightening cycle in decades.But Dr Chalmers said continuity was just as important for the governance board as the monetary policy board.“There is a difference of opinion – let’s be upfront about it – with the opposition,” Dr Chalmers said.
The RBA review found the current board members as a collective lacked the capacity to sufficiently scrutinise or challenge the central bank governor on interest rate decisions. The RBA board did not vote against a single recommendation of the RBA executive in at least the past decade. RBA board membership comes with an annual salary of $82,960, according to the independent remuneration tribunal.