Federal Treasurer Jim Chalmers has thrown his support behind calls for the Reserve Bank (RBA) board to be more representative of the wider Australian community, following scathing criticism that it is out of touch with workers demanding wage increases.
- Treasurer Jim Chalmers has already committed to a review of the RBA
- But the terms of reference are still being finalized
- He says one of the most important considerations going forward is “also to ensure that the right voices are represented around the table”
During the week, ACTU Secretary Sally McManus targeted RBA Governor Philip Lowe, accuses him of indulging in a “boomer fantasy” by warning that wage growth beyond 3.5 percent will boost inflation across the country..
Mrs McManus’ assessment was extended to the RBA board as she claimed that there were no members with experience “in wage negotiations or the wage-setting system on the part of the workers.”
“Now, it’s a pretty big problem if you’re making assumptions or trying to understand, trying to analyze how things work,” she told ABC on Thursday.
Chalmers has already committed to a review of the RBA, saying the terms of reference were still being finalized.
“There has been, I think, a welcome conversation about whether the Reserve Bank board is broad enough, representative enough, whether it’s the right size,” he told ABC’s Insiders.
“When I publish the terms of reference for the Reserve Bank review, I believe that one of the most important considerations should be board representation – whether it is broad enough, in terms of geographical and gender and all the important considerations, but also to ensure that it real voices are represented around the table. “
As Australians continue to struggle with the cost-of-living crisis, the treasurer said he would provide an update on inflation forecasts when parliament meets in late July, for the first time since the federal election.
“Inflation will be significantly higher than what was expected in the latest government’s latest budget, which was also expected at the time of the election – certainly higher than the 5.1 percent we saw in the March quarter,” he said.
“This inflation problem is getting harder before it starts to ease.
“The Reserve Bank said something about 7 per cent [by the end of the year]it does not seem to me to be wildly out of the question. “
Dutton’s push for retirees
New opposition leader Peter Dutton is urging the government to allow older Australians to make more money without having their pensions cut, in an attempt to tackle labor shortages across the country.
Currently, retirees can earn $ 300 every fortnight before their payments are cut.
Sir. Dutton said it should be increased to $ 600 to encourage retirees to take casual work in areas such as retail and hospitality.
“And this allows them to do that work, to get some extra money.
“It could mean they are gray nomads traveling around and they want to work in a regional city and that will make a big difference for these companies,” he said.
Treasurer Jim Chalmers questioned why the coalition had not implemented such a policy before the election if it thought it was a good idea.
He argued that it was an issue that deserved consideration, but it can be difficult to achieve given budget constraints.
“When it comes to this issue, I have had good productive conversations with national seniors and others about whether we could do something here,” he said.
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