Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Hansard source

ALLAGHER (—) (): I thank Senator McKim for the question and for his ongoing interest in the performance of the Reserve Bank. I think the bank has a very difficult job to do, and I think the government has a job to work hand in hand with monetary policy. I await the decision of the bank today, but I think the bank have explained that it's a narrow path they are following. They have a difficult job to do. They are independent of government. We have our review of the RBA. Obviously, it's not linked to the tightening cycle. We had announced that review—

Senator Duniam can chuckle, but it's looking at the broader issue that's raised about how fit for purpose the bank is and the fact that it hasn't been reviewed for a period of time—for some 30 years, I think. This review is timely, in the sense that we will get the three panellists' views on whether there need to be changes to any settings, the mandate et cetera. The government was aware of that; obviously it was an election commitment before the last campaign. I think that review will give us the best information available to check, or see how to make sure, that the RBA remains fit for purpose for the job that it has to do. Having said that, I am not linking that in any way to the tightening cycle. We do have an inflation problem in this country. The bank has a very clear mandate to ensure that inflation sits within the two to three per cent band and to ensure full employment. They are following their mandate, and they make their decisions independent of government.