The Reserve Bank doesn't need an overhaul, Australia needs fairer policies, says former governor

Former Reserve Bank of Australia governor Bernie Fraser says the RBA has performed reasonably well over the past 30 years. (AAP: Alan Porritt )

The independence of the Reserve Bank of Australia (RBA) and its inflation-targeting have served this country well and should not be abandoned, but its performance has been undermined by governments pursuing neoliberal policies, a former RBA governor says.

Bernie Fraser — who was RBA governor from 1989 to 1996 — says Australia's central bank has helped to deliver an average inflation rate of 2.5 per cent over the past 30 years.