The Australian Greens want to end the independence of the Reserve Bank of Australia. The Greens have said they will only support changes to the RBA if interest rates are cut.
Australian Treasurer Chalmers is trying to create a new monetary policy board at the Reserve Bank of Australia, but needs Green Party support to do so.
The Greens present their demands with the misleading introduction:
- “The members of the Federal Reserve Board are not infallible priests of economics, and are not subject to criticism.”
Haha, the RBA has been far from cash!
The Greens continue:
- “That is why, by making low interest rates a condition of our support, the Greens are deliberately and consciously putting the RBA at the centre of the political debate, where it belongs.
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“You and the Fed Governor have said you want to pass this legislation. Now you know what needs to be done to secure those changes.”
Popular satire.
I think Chalmers will abandon his reforms if that is the condition. The Australian financial markets will crash if the Greens get their way.
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The Reserve Bank of Australia’s September statement is due out tomorrow at 2.30pm Sydney time.
- 0130 GMT
- 2130 EST
Last week I published an article about inflation expectations slowing:
- Australia CPI Preview – Commonwealth Bank of Australia expects ‘headline inflation to return to RBA target in August’
- Australian CPI Monthly Preview for August – Westpac Bank expects 2.7% YoY for monthly reading
And preview the Reserve Bank of Australia statement due tomorrow:
Australian dollar:
When can we expect the Reserve Bank of Australia to cut interest rates?
Current monetary and inflation rates
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