Australian (populist swill) politicians are now actively moving to remove RBA independence

The Australia ‘Greens’ party want RBA independence ended. The Greens said they’ll support changes at the RBA only if interest rates are cut.

Australian Treasurer Chalmers is trying to create a new

monetary policy board at the RBA, but do so he needs support of the Greens Party.

The Greens preface their demands with the misleading:

• “The Reserve Bank board are not infallible high-priests of the
  economy who are above criticism”

LOL, the RBA have been anything but above criticism!

Greens go on:

• “That is why, by
  making lower interest rates a condition of our support, the Greens
  are consciously and deliberately putting the RBA into the centre of
  political debate, where they belong.

• “Both yourself and
  the Reserve Bank governor have said you want this legislation passed.
  Now you both know what has to be done to secure these changes.”

Populist swill.

I suspect Chalmers will bin his reforms if this is the condition. Australian financial markets will be smashed if the Green politicians get their way.

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The RBA September statement is due tomorrow at 2.30 pm Sydney time

• 0130 GMT
• 2130 US Eastern time

I posted last week on expectations for slowing inflation:

• Australia CPI preview – CBA expect “Headline inflation in August back within RBA’s target”
• Australian August Monthly CPI preview – Westpac expect 2.7% y/y for the monthly read

And preview of the RBA statement due tomorrow:

• RBA meeting – preview – to leave the cash rate on hold at 4.35%

AUD:

• AUD/USD support: RBA on hold with strong jobs market, sticky CPI; Fed policy divergence

And, when to expect a rate cut from the RBA:

• CBA shifts expected RBA rate cut timing to December 2024 (from November)

Current cash and inflation rates

This article was written by Eamonn Sheridan at www.forexlive.com.