November 28, 2024 09:45 GMT
RBA: Senate Passes RBA Overhaul, As Expected
RBA
"*AUSTRALIA SENATE PASSES BILL TO OVERHAUL RESERVE BANK BOARD" - bbg
This is as expected - and is part of Albanese's push to finalize legislation in the final 24 hour window of the Senate of 2024 - the reforms would split the RBA board in half, an MPC board, and an operations-based board - but this is a formalization of the changes recommended in the recent policy review, rather than new news here.
- Importantly, the Treasurer still retains the right to override rate decisions, which sounds dramatic in isolation, but has never been used since the inception of the law in 1960, with ministers still supporting RBA independence.
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