Politicians must be able to overrule RBA, say ex-governors

Ian Macfarlane and Bernie Fraser argue government should retain veto over Australian monetary policy

Printing Australian dollars
Photo: Daniela Campanale/Note Printing Australia

Australia’s government is facing opposition from former policy-makers over a plan to repeal the powers of the treasurer (chief finance minister) to overrule the central bank’s monetary policy.

The proposal is part of the Labor government’s planned overhaul of the Reserve Bank of Australia (RBA). 

Section 11 of the current Reserve Bank Act stipulates that if the treasurer is unable to reach agreement with the RBA board on monetary policy, they can overrule the bank after following certain formal

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