Review looms for embattled RBA
The federal Treasurer has hinted at changes to the make-up of the RBA board.
The Reserve Bank (RBA) board has been criticised for being out of touch with workers and their need for wage increases.
ACTU Secretary Sally McManus recently said RBA governor Philip Lowe is indulging in a “boomer fantasy” with current policies, including his warning that inflation will be driven up if wage growth is above 3.5 per cent.
Ms McManus extended her criticism to the RBA board, which she said lacked people with experience “in negotiations for wages, or the wage setting system from the workers' side”.
“Now, that's a pretty big problem if you're making assumptions or trying to understand, trying to analyse how things work,” she told the ABC.
“They absolutely have, in my view, very little idea how things work.”
Treasurer Jim Chalmers has committed to a review of the RBA.
“There has been, I think, a welcome conversation about whether or not the Reserve Bank board is broad enough, representative enough, whether it's the right size,” he told reporters over the weekend.
“When I announce the terms of reference for the Reserve Bank review, I think one of the key considerations should be board representation - whether it's broad enough, in geographic terms and gender and all the important considerations, but to also make sure that the right voices are represented around the table.”