Today's annoucement. After reading some of the articles, I honestly think nothing will really change except more flowery words and more frequent press releases or annoucement lol
https://www.smh.com.au/politics/federal/the-biggest-shake-up…
https://www.news.com.au/finance/economy/interest-rates/revie…
https://www.9news.com.au/national/rba-review-interest-rate-c…
Its gonna cost the taxpayers more as well to pay the 'other' new board just to come to the same conclusion.
Yes, why not run a national poll to decide it every time?
Nice idea but sometimes the general public dont really have an idea about long term consequences and will just vote whatever benefits them in the short term.
"It is not yet known if the government or the board will appoint the specialist board and the governor’s role on it is not confirmed. "
This is worrying. Thinking about the government using RBA interest rates as a political/election tool is a bit scary.
Better imo, atleast they would be accountable, unlike the RBA.
Not that I am suggesting that the RBA have any proper financial understanding (any man and their dog could see we would get inflation after the covid money printing), but the government controlling the interest rates directly would be disastrous. They would probably drop the interest rates from here significantly to appease the masses, and then we'd get hyperinflation.
Accountable to who?
Politicians? Accountable? BWAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA HAHAHAHAHAHAHAHAHAHAWAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA HAHAHAHAHAHAHAHAWAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA HAHAHAHAHAHAWAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA HAHAHAHAWAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA HAHAWAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA
INHALE
BWAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAWA HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAWAHAHA HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAWAHAHAHAHA HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAWAHAHAHAHAHAHA HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAWAHAHAHAHAHAHAHAHA HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA
Do you vote?
@elgrande: I do, but that does not make them accountable, it just means they might only last 4 years before there is a chance they MAY not be in power again.
Chalmers confirmed the RBA would maintain independence from the government under the recommendations, and this (proposed) model is currently in use elsewhere (Bank of England and Canada both use it), so nothing too scary in there.
Its not being reported very well.
The board of an incorporated entity is responsible for governance of the company eg risk management, HR, procurement etc
The RBA board is currently responsible for these activities AND setting interest rates and other 'economic' related actions
The new proposal is that the board becomes a standard governance board and there is a separate committee that does the interest rate stuff. That separate committee will, therefore, be doing the interest stuff that the 'Board' currently does and will be doing it exactly the same way and with the same powers and responsibilities.
I'm pretty sure there will be a number of people on the board and on the committee (eg the RBA governor) and there will be people on one only (eg economist on the committee, company finance specialist on the board)
Instead of saying 'the RBA board changed interest rates' it will be the 'RBA monetary committee (or whatever its called) changed interest rates'.
There will be details such as whether the government appoints the committee (probably) or the board appoints the committee; but given that the government currently appoints the board it wont really make any difference from existing arrangements if the government appoints the committee. Its only if the committee appointments are made on a 'at the discretion of the Minister' vs 'for a fixed period of time' that there could be concerns about it becoming politicised
So taxpayers gotta forkout another set of remuneration for the separate committee board who'll most probably come to the same conclusion but provide a more "detailed" report regarding their decision lol
Got a source that isn't the 9fairfax/newscorp trash?
so a source that isnt one of the major newspapers as to what the government proposes to do in response to a report? What are you expecting?
You can read the whole report yourself if you want https://www.smh.com.au/interactive/hub/media/tearout-excerpt/15942/RBA-Review_Final-(1).pdf but that doesnt tell you how the government is responding to the report
Its everywhere even on abc.
its better to read the actual report instead of speculative newspapers.
As long as Dr lowe is sacked or at least not coming back in RBA again would be least I expect
It is all a show for the public. Make it look like something has actually been done, but nothing is really going to change.
It just passes the buck to the next guy, who will in all likelihood will act in the same way as the RBA did.
What new tools will they have to allow them to act differently?
RBA is only allowed to lower interest rates and it should have left interest rate at 0 forever. Get rid of the RBA right now.
You want australia to end up like turkey or Zimbabwe?
Just more political bullshit, really… with a new "look"… and these days… "feel" too.