Talk:Reserve Bank of Australia

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see photos on the RBA web site http://www.rba.gov.au/AboutTheRBA/rba_board.html#members

[edit] Independent?

How independent is the Reserve Bank from the government of the day? --219.89.236.186 00:19, 3 August 2006 (UTC)

Completely I believe. Technically, the government could revoke the ACT which formed the RBA etc, but such a move would be absolute political suicide and would never be done. Or not in the present climate anyway. The RBA makes its own decisions independently of the governmentGreenGopher 06:27, 10 November 2006 (UTC)
While it makes decisions indepedantly it must still report to the goverment. if the RBA fails to acheieve is goals (of maintainly stability and working for the good of the people) it WILL be revoked by the upper house. Technically it can't really fails because its 3 main objectives were poorly throught out. The first one directly effects the 2nd and 3rd, and the RBA has never attempted to forfill the first objective (stability of the currency), they are happy to let it increase exponentially.--Dacium 22:28, 26 February 2007 (UTC)
Although the RBA is nearly completely independent of the government, we must remember that Peter Costello is still a member of the board. Political bias should be minimal but regardless his actions are no doubt motivated by his political position as treasurer. —Preceding unsigned comment added by 121.219.51.235 (talk) 09:04, 7 November 2007 (UTC)

This is not a surprise to me. After watching this documentary http://www.freedomtofascism.com/index.html everything is falling in place. It is quite hard to beleve but the facts are right there. —Preceding unsigned comment added by 203.214.82.197 (talk) 13:47, 12 July 2007 (UTC)

I just read this quote, which made me very curious about the RBA:

"This much anticipated decision is also the first time the RBA has moved rates upwards in an election year since the Howard Government granted it independence at the outset of its first term in office. It will also probably be the most analysed economic policy decision for a very long time. "

[Not All McMansions and Happy Meals] What act did that gov't pass? How did it change the RBA? 99.245.173.200 14:06, 29 August 2007 (UTC)

Basically, the reserve bank, as stated in the article, used to simply be a tool of the government. While it was the RBA who set the cash rate, this decision was made with advice (ie orders) from the government, ensuring it remained a political tool. In 1996, Costello formalised the RBA's independence, which meant that the RBA now makes its own decisions seperate of that to the government, which is prohibited from interfering. I don't know the exact Act, I can research it if people think it's important.
The main reason these reforms were made were because governments prior would not raise interest rates unless it was absolutely necessary, as it was politically unpopular - obvious reasons as to why. Problem is, this would ensure governments waited until after elections, by which point inflation was already a massive problem, and the economy would be shot. Hence rates would have to climb to 15% to fix the problem, creating a lot of short term pain - cue Keatings 'recession we had to have.' The RBA is now supposed to act regardless of the politics, so rates are raised as necessary, not in one big lump after the election. The last rate rise was seen as so important because it was the first time the bank had raised rates in an election year, potentially damaging the government. It is seen as a sign it is finally embracing its independence
/ramblings GreenGopher 12:02, 30 August 2007 (UTC)

[edit] Merge from Governor of the Reserve Bank of Australia

I suggest that the article Governor of the Reserve Bank of Australia into the Governors section of this article. The other article merely duplicates the information already in the main article. Kelvin 09:15, 14 April 2007 (UTC)

Done Althepal 06:21, 24 April 2007 (UTC)