Australia Treasurer Chalmers: Some RBA review proposals may need legislative changes

“Some recommendations from an independent review of the Reserve Bank of Australia’s (RBA) monetary policy decision-making and board make-up may require legislative changes to enact,” said Australian Treasurer Jim Chalmers on Thursday while speaking on ABC Radio per Reuters.

Reuters also added that the review was called after the RBA undershot its inflation target of 2% to 3% for much of the last decade and issued guidance during the COVID-19 pandemic that rates were not expected to rise until at least 2024,” while also mentioning, “But the RBA has made 10 straight rate hikes since May to tame surging inflation.”

Aussie Treasurer Chalmers looks set to receive on Friday the findings of the report on the RBA.

Additional quotes

The government would look to reach consensus with the opposition parties to amend any laws ‘if we go down that path’.

If there are some that require a change to the (RBA Act) that we're keen on progressing, then ideally we would do that in a bipartisan way.

I would release the report with the government's initial views next month, ahead of the federal budget in May.

So I'd like to put it out in April, and people can go through it and see what they think about it.

A decision whether to re-appoint Governor Philip Lowe, whose term ends in September, would be taken ‘closer to the middle of the year’ in consultation with Prime Minister Anthony Albanese and the cabinet.

AUD/USD stays pressured

AUD/USD remains depressed around 0.6680 by the press time, following the first daily loss in three.

Also read: AUD/USD struggles below 0.6700 as market sentiment dwindles on inflation, banking concerns