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RBA: Senate Looks Likely To Pass RBA Board-Splitting Legislation

RBA
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The Greens have agreed to support the government’s proposals for the recommended RBA review changes in the Senate where the administration needs their votes. The sticking point for the opposition coalition was the Treasurer choosing the replacements on the monetary policy board when the current Board is split into policy and operations. The Greens have agreed to this on the condition that Section 11 of the RBA Act allowing the Treasurer to override a policy decision is retained, which finance minister Gallagher said the government is open to.

  • The other Greens amendment allows for the RBA to inform banks where to focus lending. The left wing party had previously demanded that the government force the RBA to cut rates, which would have breached its independence.
  • Governor Bullock has asked for continuity on the monetary policy committee with not too many external members shifting when the current Board is split. The opposition was concerned that they would be replaced by people sympathetic with the current government.
  • Today is the last chance for the government to pass the RBA bill before the Christmas break and possibly before the next election due by mid-May 2025. Dividing the RBA Board required legislation whereas introducing meeting press conferences did not and they have now been in place since the start of the year. 
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The Greens have agreed to support the government’s proposals for the recommended RBA review changes in the Senate where the administration needs their votes. The sticking point for the opposition coalition was the Treasurer choosing the replacements on the monetary policy board when the current Board is split into policy and operations. The Greens have agreed to this on the condition that Section 11 of the RBA Act allowing the Treasurer to override a policy decision is retained, which finance minister Gallagher said the government is open to.

  • The other Greens amendment allows for the RBA to inform banks where to focus lending. The left wing party had previously demanded that the government force the RBA to cut rates, which would have breached its independence.
  • Governor Bullock has asked for continuity on the monetary policy committee with not too many external members shifting when the current Board is split. The opposition was concerned that they would be replaced by people sympathetic with the current government.
  • Today is the last chance for the government to pass the RBA bill before the Christmas break and possibly before the next election due by mid-May 2025. Dividing the RBA Board required legislation whereas introducing meeting press conferences did not and they have now been in place since the start of the year.