Last week’s announcement by Treasurer Jim Chalmers to split the Reserve Bank of Australia’s board into two – comprising a new nine-member monetary policy board tasked with setting interest rates and maintaining the bank’s inflation-target framework, and a separate governance board – deserves and will likely receive bipartisan support.
It is the major recommendation flowing from the independent review of the RBA commissioned by Dr Chalmers in July 2022, the first such review since the 1990s.
