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Jim Chalmers reveals new Reserve Bank board that will set interest rates next year

In the biggest shake-up of the Reserve Bank of Australia in decades, the government passed legislation on the last day of last year to split the current board of the Reserve Bank of Australia into two, one dedicated to setting interest rates and the other responsible for the bank’s other governance responsibilities. Chalmers Institute of Technology announced today that Renée Fry-McKibbin and Marnie Baker have been appointed to the Monetary Policy Committee.

Jim Chalmers reveals the new Reserve Bank board will set interest rates next year

Jim Chalmers announces the composition of the Reserve Bank of Australia’s two new boards. (Alex Ellinghausen/SMH) They will join Finance Minister Stephen Kennedy and four current board members who have chosen to sit on the rates panel: Caroline Hewson, Ian Harper, Ian Ross and Alison Watkins. Two other board members, Carol Schwartz and Elana Rubin, have chosen to sit on the governance committee, and they are joined by new appointees Jennifer Westacott, David Todd, Danny Gilbert and Swati Dave, as well as RBA chief operating officer Susan Woods. Explained: What the Reserve Bank really thinks about when setting interest rates Governor Michelle Bullock and her deputy, Andrew Hauser, will sit on both boards. “These are highly qualified, high-calibre people who represent the best mix of relevant skills, capabilities and experience,” Chalmers said. He said the government had consulted with the opposition on the appointments mid-year.

Jim Chalmers reveals the new Reserve Bank board will set interest rates next year

Reserve Bank of Australia Governor Michele Bullock will sit on both committees. (Alex Ellinghausen)”We’ve tried to make this as bipartisan as possible and we’ve consulted in good faith,” Chalmers said. The dual-committee structure was one of 14 recommendations made by a three-member panel reviewing the central bank that includes newly appointed Fry-McKibbin. “This is about modernizing the Reserve Bank, learning from international best practice and making sure we’re enabling the Reserve Bank to make the best, most considered decisions going forward,” Chalmers said. “That’s what the whole Reserve Bank review is about.” The two committees will come into effect on March 1, between the Reserve Bank’s first and second interest rate decisions in 2025.

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