It’s another Chicken Chalmers moment when bold reform is pushed aside in favour of nudging around the status quo:
Reserve Bank interest rate decisions that affect millions of mortgage holders will be handed to a second board of experts, as part of an overhaul of the central bank that recognises a lack of technical skills has contributed to a string of policy mistakes over recent years.
The government will back all 51 recommendations in a report to be released on Thursday after a root-and-branch review of the RBA by a three-person panel, with Treasurer Jim Chalmers saying the country’s pre-eminent economic institution will be transformed to “ensure Australia’s central bank and monetary policy arrangements are as strong and effective as they can be into the future”.
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