The Reserve Bank of Australia monetary policy board has new members

Summary of RBA Board Changes

• New Appointments:

  • Marnie Baker, CEO of Bendigo Bank, and Renee Fry-McKibbin, ANU economics professor, have been appointed to the Reserve Bank’s new monetary board for five-year terms starting in March 2025.

• Restructured RBA Board:

  • The RBA will split into two boards:
    • Monetary Board: Controls interest rates.
    • Governance Board: Manages central bank operations.
  • Existing board members were given the choice to join either board.

• Additional Governance Board Members:

  • Four new external members join the Governance Board: Jennifer Westacott, David Thodey, Danny Gilbert, and Swati Dave.

• Leadership and Membership:

  • Both boards will have nine members and be chaired by RBA governor Michele Bullock with deputy governor Andrew Hauser as deputy chair.
  • Treasury secretary Steven Kennedy and RBA’s COO will hold positions on the Monetary and Governance Boards respectively.

• Treasurer’s Statement:

  • Treasurer Jim Chalmers described the appointments as part of the most significant RBA reforms in over three decades, emphasizing the focus on inflation and cost-of-living challenges alongside reforms.

This restructuring is expected to face opposition from the Coalition, which had opposed changes to the board structure.

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The Australian government will go to an election in 2025. Its expected my May. The government is desperate for an interest rate cut before the election. Its difficult to view these changes to the RBA without bearing that in mind.

Reserve Bank of Australia Governor Bullock

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