Future RBA Board Composition a ‘Major Future’, Says Federal Treasurer

Federal Treasurer Jim Chalmers has expressed support for the call to the Reserve Bank (RBA) board to be more representative of the wider Australian community, after scathing criticism that it is out of contact with workers demanding wage increases.

During the week, ACTU Secretary Sally McManus took aim at RBA Governor Philip Lowe, accusing him of indulging in a “boom fantasy” by warning that wage increases of more than 3.5 percent would further fuel inflation across the country. .

Ms McManus’ assessment extended to the RBA board, when she argued that there were no members with experience “in wage negotiations or the wage-setting system on the part of the workers”.

“That’s a pretty big deal when you’re making assumptions or trying to understand, trying to analyze how things work,” she told ABC on Thursday.

Chalmers raises a hand with a decorative bracelet on his wrist as he speaks in front of a lectern.
Treasurer Jim Chalmers says there has been a welcome discussion about whether the Reserve Bank’s board is broad enough.ABC News: Luke Stephenson