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The Part-Time Amateurs At The RBA!

The RBA could soon see a major overhaul, amid accusations that its nine-member board lacks economic qualifications writes Frank Chung over at news.com.

As inflation skyrockets and borrowers grapple with sharply rising interest rates, a series of “embarrassing” missteps have focused public attention on the Reserve Bank like rarely before.

With the new Federal Government preparing to undertake a “once-in-a-generation” review of the RBA, former insiders have delivered a blunt assessment of the institution responsible for setting Australia’s monetary policy.

“The board is failing, and the reason it fails is because it lacks expertise,” said Peter Tulip, former head of research at the RBA.

Well, we argue the much needed review MUST be extended to include APRA and the Council Of Financial Regulators, the peak body chaired by the RBA as well.

A raft of poor policy and decisions have led us to create an over-leveraged society, at risk from rising interest rates. And there must be accountability and transparency, unlike at the moment.

But will the proposed review get to the heart of the matter – we doubt it.

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Written by Walk The World

Comments

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  1. Since it was by and large the RBA's low rates that enabled housing price increases and then the late rate response to inflation, responsibility for the housing bubble lies fairly and squarely with the RBA.

  2. Academic economists have the same level of influence on the economy that academic meteorologists have on the weather!
    This is left-leanng academics wanting their payoff from the new labour government.

  3. All you need to do is look at the RBA growth forecast vs actual chart over the last 15 years. In the words of Trump “you’re fired”. APRA and ASIC. . . Bwaaaahaaaahaaaahaaaa! How do I get a job where I get paid a lot for doing nothing?

  4. Because your successful in business doesn’t mean you are the same in monetary policy. I’m totally against board members having a public views on what there outlook is. In the US they are paraded as some sort of gods regarding monetary policy and yet they still get it wrong. I would like to see however what the voting was on a decision, but it’s my clear understanding that MR Lowe decides on rate move not the board.

  5. I don't think that's the case… They are trying to blame their bad decision on incompetent so you can't blame them for being corrupted

  6. I would suggest that the RBA and board is not independent from the govt at least, and corrupt at most. Scum-oh and Friedenberg's economic credibility, based on constantly rising house prices, was touted as 'you're all richer thanks to the LNP so go and spend more money'. This was facilitated by a Reserve Bank that NEVER addressed the problems after the GFC, instead lumbering Australia with low and reducing interest rates and increasing money printing … combined with the govt's ridiculous immigration policy and no wage rises policies. Lowe, under Scum-oh's instruction? even went as far as to unnecessarily announce 'No rate rises until 2024', arguably the highest level of financial advice for 'should we buy a house now?'
    Once the RBA was assured that the LNP would lose the election they took the almost unprecedented step of announcing a rate rise 2 weeks before a Fed election.
    As Lowe is a public servant, our highest paid at $1.06m pa, I hope he is subject to a new ICAC.

  7. PS ATAGI could well have had business people on it's panel because it systematically ignored FACTS published in scientific journals in favour of it's own academic ideals, personal opinions and considerable political pressure from Scum-oh and Hunt as to the need to ratify THEIR decisions re the only solution – vaccines. (Complicit in this was Skerett's – TGA – ruling, with considerable scientific data to the contrary, that Ivermectin and Hydroxychloraquine didn't work and must be BANNED from availabliity. Guess you can't control a population that can cure itself, eh Morrison?)

  8. So just blame the board and change them instead of the fault of the rba as an institution? The nails were already placed in the coffin when they ventured into QE and MMT

  9. Also of question is who decides 2-3% inflation is desirable, it should be ZERO. Why should the price of an item go up, or decline in the case of fiat currency, based on a calendar year when the item hasn't changed?

  10. This is all fine – the RBA (and all the other central banks) can just stop setting interest rates, and we'll let a market develop. No more monetary policy, no more mistakes, no more big salaries, no need for a review.
    EndTheFed

  11. I would have used the word morons not amateurs.
    I could buy a magic eight ball and do a better job using that.
    I wish my job has the same lack of accountability as the RBA board of directors have.

  12. All these unelected people deciding public policies and keeping their deliberations effectively secret. The sudden reporting of these goings on suggests that change is coming.

  13. Excellent article….board and gov should resign before they are pushed. You must question if the advise to the board was any good…are the documents and transcripts public ? Nice little research project for someone

  14. The RBA is just a scapegoat for people's ignorance for the laws of the land. It's the two party systems' 115 year survival which has allowed centralized governments to have more control over people's finances, health and military than necessary. Had the voting system been based on quality ideas and voted by knowledgeable people with wisdom and experience rather than because they're from rich and famous backgrounds, we wouldn't be in this global mess which basically is war.

  15. I remember Josh Freidenburg bleeting repeatedly last year how aussies had $2 billion stashed in savings accounts after Covid and how we should start spending. At no point did I ever hear any LNP member ever suggest that people should pay down debt!

  16. It is my opinion that the RBA is a theatre. Like the RBNZ, it is my opinion that they present the facade of guiding policy only.
    I believe policy directives arrive from Switzerland. Policy is designed to damage the little people as they are snared in the final trap – the trap that will facilitate the passing of their wealth to the elites.

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