The Australia 'Greens' party want RBA independence ended. The Greens said they'll support changes at the RBA only if interest rates are cut.
Australian Treasurer Chalmers is trying to create a new monetary policy board at the RBA, but do so he needs support of the Greens Party.
The Greens preface their demands with the misleading:
- “The Reserve Bank board are not infallible high-priests of the economy who are above criticism”
LOL, the RBA have been anything but above criticism!
Greens go on:
- “That is why, by making lower interest rates a condition of our support, the Greens are consciously and deliberately putting the RBA into the centre of political debate, where they belong.
- “Both yourself and the Reserve Bank governor have said you want this legislation passed. Now you both know what has to be done to secure these changes.”
Populist swill.
I suspect Chalmers will bin his reforms if this is the condition. Australian financial markets will be smashed if the Green politicians get their way.
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The RBA September statement is due tomorrow at 2.30 pm Sydney time
- 0130 GMT
- 2130 US Eastern time
I posted last week on expectations for slowing inflation:
- Australia CPI preview - CBA expect "Headline inflation in August back within RBA’s target"
- Australian August Monthly CPI preview - Westpac expect 2.7% y/y for the monthly read
And preview of the RBA statement due tomorrow:
AUD:
And, when to expect a rate cut from the RBA:
Current cash and inflation rates
