Public outcry has erupted as Australians express their strong dissatisfaction with the recent announcement of major changes to the Reserve Bank of Australia (RBA) in the aftermath of a series of significant interest rate hikes, many labelling it “too little too late”.
During his Address at the Economic Society of Australia (QLD) Business Lunch in Brisbane on Wednesday, July 12 RBA Governor Philip Lowe set out the raft of “significant” changes to the RBA Board after a thorough governmental review.
“At its recent meetings, the Board has spent time discussing the Review’s recommendations,” Lowe said.
“The world we face is increasingly complex and it is right to re-examine how we make and communicate monetary policy decisions and how the RBA is managed.
“Together, these changes are significant and represent a substantial response to the recommendations of the Review.”
Some of the changes Lowe announced include:
The changes come in the wake of mounting criticism directed towards the RBA due to its swift implementation of interest rate hikes and its pre-pandemic operational strategies, which have come under intense scrutiny amidst the global economic downturn.
Although there may have been a hope that the overhaul would appease discontent caused by the recent series of interest rate hikes, the reality turned out to be quite different.
Too little too late.
In the name of god go, just go.
— B4Bear (@B4bearau) July 12, 2023
Now it is time to cut Phillip Lowe.
Lowe must go.
— Jake Winker Frogen (@JWFrogen) July 12, 2023
Just means bigger raises 8 times a year instead of 12 smaller one.
— Chris (@Chris_198011) July 12, 2023
He has left reform until very late in his term
— Rob Buist Obstetrics (@buist_rob) July 12, 2023
Sadly out of touch with the Australian public. These changes are superficial and designed to distract attention from bad policy making. It’s time a new board was appointed
— Toecutter (@HRHKJ4) July 12, 2023
The changes are set to take effect from February 2024.