Jim Chalmers appoints business heads, top economists to Reserve Bank boards
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The news: Treasurer Jim Chalmers has unveiled a raft of new appointees to the Reserve Bank boards, ranging from high-profile business personalities to academics.
Former Bendigo and Adelaide Bank chief executive Marnie Baker and Australian National University economics Professor Renée Fry-McKibbin have both been appointed to the monetary policy board. Fry-McKibbin was one of three panellists as part of the landmark RBA Review.
Former Business Council of Australia CEO Jennifer Westacott, ex-Telstra boss and current Xero chair David Thodey, co-founder and chair of Gilbert + Tobin Danny Gilbert and former CEO of Export Finance Australia Swati Dave have been appointed to the governance board.
The monetary policy board now comprises of:
- Alison Watkins
- Ian Harper
- Carolyn Hewson
- Iain Ross
- Renée Fry-McKibbin
- Marnie Baker.
The governance board now comprises of:
- Carol Schwartz
- Elana Rubin
- Swati Dave
- David Thodey
- Danny Gilbert
- Jennifer Westacott.
The new board members will start their positions in March.
The context: The additional appointments have been made following the passing of legislation that introduced a second board to the RBA, with one focused on governance and one on monetary policy.
The government says there were months of consultation about the appointments, including with the Opposition. The Opposition has raised concerns Labor could seek to stack the board with those sympathetic to its positions, such as former union officials.
The government says it took advice from Treasury Secretary Steven Kennedy, RBA governor Michele Bullock and former Treasury secretary Martin Parkinson. There was an expression of interest process and the panel shortlisted candidates using a skills matrix. Existing board members were asked about their preferences for boards.
What they said: "These appointments will ensure continuity on both boards, consistent with the preference of the RBA governor. Each member has made a significant contribution to the RBA Board and I am grateful for their continued service," Chalmers said in a statement.
"I have staggered the term lengths of new appointments and extended the terms of existing external members to ensure both boards have the right balance of experience and fresh perspectives. This approach is consistent with the RBA Review recommendations.
"... These appointments are one part of the biggest set of reforms undertaken at the Reserve Bank in more than three decades. These changes show we can maintain a primary focus on inflation and the cost of living while we keep the reform wheels turning."
The source: Treasurer media release
