Reserve Bank of Australia Governor Michele Bullock has addressed concerns regarding the independence of the central bank, specifically regarding the Treasury Secretary’s membership on the monetary policy board. The board is responsible for voting on crucial interest rate decisions, and questions have been raised about potential conflicts of interest. Bullock firmly rejected suggestions that Treasury Secretary Jenny Wilkinson’s presence on the board poses a threat to the RBA’s autonomy from governmental influence.
Bullock clarified that there is no legitimate risk of Wilkinson simply following directions from Treasurer Jim Chalmers when casting her votes. She emphasised that Wilkinson participates as an individual, not as a representative of the Treasurer’s office. Bullock highlighted that the recent review of the Reserve Bank of Australia thoroughly examined the role of the Treasury Secretary on the board.
The review concluded that the arrangement remained appropriate, and the government explicitly acknowledged that the Secretary serves in a personal capacity. This understanding, according to Bullock, safeguards the integrity of the decision-making process and ensures the RBA’s independence.
The Reserve Bank of Australia is the country’s central bank, responsible for maintaining price stability and full employment. It also oversees the payments system and issues banknotes.
