After yesterday’s suggestion that a brick would do as good a job as Phil Lowe at the RBA owing political sensitivities, Goldman Sachs offers this chart on central bank independence:
The Goldman piece was about highlighting how the US Fed doesn’t actually have that many legal protections if Trump decides to test his powers.
I didn’t realise how poorly the RBA rates on independence – particularly legal. Peter Costello’s changes to “enshrine” independence are held up as one of his crowning achievements. Bottom 3 of about 50 countries doesn’t seem like a position that Australia should be pleased about.
Perhaps that’s one reason why its governors are so touchy.
Damien Klassen is Chief Investment Officer at the MB Fund launching in April 2017. Register your interest now (if you haven’t already):