Good afternoon. The treasurer, Jim Chalmers, says workers “deserve a voice around the Reserve Bank table” and has announced the government will accept all 51 recommendations from a review to overhaul the central bank. Chalmers also today named two new appointments to the existing nine-member board, including Iain Ross, a former Fair Work Commission head.
The RBA governor, Philip Lowe, welcomed the review, acknowledging that “as times change, we need to change too”. Chalmers hopes to implement the reforms by July 2024, which is looking likely given the opposition’s “very positive” response to the review. However, the Greens argue reforming the Reserve Bank won’t be enough to fix inflation, and economist John Quiggin writes that the review ignores the global failure of inflation management to prevent financial chaos.
