The Treasurer has announced a major shake-up of the reserve bank appointing a new board of experts whose sole task will be setting interest rates. The Coalition claims Labor is playing political games with the central bank, while the government hopes for a rate cut before the next election.
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00:00A refresh to the rate-setting Reserve Bank.
00:06This is about modernising the Reserve Bank and making sure that we equip the Reserve
00:09Bank to make the best, most considered decisions into the future.
00:14The new look Central Bank follows a review that recommended the board be split in two,
00:19with a Monetary Board to control interest rates and a Governance Board to oversee the
00:23bank's affairs.
00:25The new appointments to take effect from March include senior banking executives, business
00:30leaders and a leading economics professor.
00:33These are high quality, high calibre people.
00:37Reserve Bank Governor Michelle Bullock says their expertise and insights will be vital
00:41as we continue our efforts to bring inflation back to target.
00:45The big question now is what, if anything, does it mean for households as presents place
00:51pressure on hip pockets?
00:54This new monetary policy board brings on more economic expertise to navigate a more
01:00complex world.
01:01The overhaul drawing a whack from the opposition.
01:05Now he's going about sacking and stacking the Reserve Bank board.
01:08We want to see a credible, capable and independent Reserve Bank that has stability in its governance.
01:16None of the current board members have been sacked though and Angus Taylor couldn't point
01:21to any new members he has an issue with either.
01:24Nonetheless, his argy-bargy sets the scene for a fight on the economy this week as Jim
01:29Chalmers prepares to hand down an increasingly bleak mid-year budget update.
01:34It'll show an expected $100 billion downgrade in mining exports over the next four years
01:40with the blame being put on China's weak economy.
01:44The flow on from that is a smaller company tax take and an $8.5 billion blow to the budget.
01:51Thanks very much.