Macfarlane defends RBA appointments

Reserve Bank of Australia governor Ian Macfarlane has defended the process used to appoint the central bank's board members following the resignation of Robert Gerard.

Gerard resigned from the RBA's board on 2 December after revelations of his tax history and donations to the Liberal party.

In 2003 Mr Gerard made a $150 million settlement, which included costs, with the Australian Tax Office (ATO) over a Caribbean tax haven.

Speaking to economists in Sydney, Mr Macfarlane said Mr Gerard had an o