Treasurer Jim Chalmers has confirmed that he hopes to release the findings of the wide-ranging review into the Reserve Bank of Australia (RBA), with an initial view from the government, as soon as next week.
Speaking to the media in Canberra upon his return from Washington DC on Monday, the Treasurer said: “I hope to be able to release the Reserve Bank review quite soon, ideally in the next week, but certainly in the next couple of weeks that will be released with an initial view from the government about the 51 specific recommendations contained in the report”.
The review, which was announced in July last year, was led by a panel of three independent experts including former senior deputy governor to the Bank of Canada Carolyn Wilkins, Australian National University economics professor Renée Fry‑McKibbin, and eminent Australian economist Dr Gordon de Brouwer.
The Treasurer confirmed that he had spoken about the contents of the review’s findings with RBA governor Philip Lowe.
“Before long, I want to have a discussion with the Opposition and ideally the crossbench about the contents of that report as well,” he said.
Mr Chalmers also revealed that there will be a “legislative element” to the recommendations that have been put forward by the review panel.
“There are some recommendations which would require legislative change, there are some that would require the governor and the board to change the way that they go about things at the bank, there are some pieces of it which will factor into the statement of conduct of monetary policy and so for all of these reasons, ideally, people will see this review, they’ll consider the recommendations and ideally they’ll come to the sorts of conclusions that I have which I’ll make clear in the course of coming days,” Mr Chalmers explained.
He reiterated an earlier assessment that the review had yielded “bipartisan opportunity” to build the reputation of the RBA.
“As I’ve done before, I commend Angus Taylor for the way that he’s engaged with the review panel. I’ve arranged definitely two, perhaps three briefings from the panel while their work has been under way so that he can stay abreast of their thinking as it developed and ideally before long, I can provide him with the report, provide him with a sufficient briefing and other conversations so that he can take it to his team and contemplate it,” the Treasurer said.
“And we’ve also had the review panel brief the crossbenchers before the finalisation of the report and that’s because I genuinely want this to be bipartisan.”
Also on Monday, the Treasurer said that he would be convening for the second time the Treasurer’s Investor Roundtable this Friday in Brisbane, with a focus on cleaner and cheaper energy.
On the Treasurer’s agenda are discussions pertaining to broadening and diversifying Australia’s own industrial base, to take advantage of the “immense opportunities” that come from the shift to net zero.
Global events to influence budget
Divulging further on the government’s second budget, particularly in the context of the meetings he attended in Washington DC, the Treasurer said: “The uncertainty and volatility in the global economy will be a really key influence on the budget that we hand down in May”.
“It will influence our forecasts but it will also influence how we try and strike this balance between maintaining the kind of fiscal restraint which was a hallmark of the October budget, but also making sure that we can support people through a difficult period,” Mr Chalmers said.
“That’s the fine balance and series of fine judgments which are central to this budget that we hand down in May.”
The budget, he elaborated, will be about three things: cost‑of‑living help without adding to inflation; laying the foundations for economic growth with a focus on energy, industry, and the care economy; and building resilience.
“The best antidote to global economic uncertainty is responsible economic management here at home, and that’s what the May budget will represent,” the Treasurer added.
The Labor government’s second budget is expected to be handed down on 9 May.
