Future make-up of RBA board a ‘key consideration’ going forward, says Federal Treasurer

Federal Treasurer Jim Chalmers has thrown his support behind calls for the Reserve Bank (RBA) board to be more representative of the broader Australian community, following scathing criticism that it is out of touch with workers demanding wage increases.

During the week, ACTU Secretary Sally McManus took aim at RBA governor Philip Lowe, accusing him of indulging in a “boomer fantasy” in warning that wage growth beyond 3.5 per cent would further fuel inflation across the country.

Ms McManus’s assessment extended to the RBA board, when she argued there were no members with experience “in negotiations for wages, or the wage setting system from the workers’ side.”

“Now, that’s a pretty big problem if you’re making assumptions or trying to understand, trying to analyse how things work,” she told the ABC on Thursday.

Chalmers raises a hand with a decorative bracelet on his wrist as he speaks in front of a lectern.
Treasurer Jim Chalmers says there has been a welcome conversation about whether or not the Reserve Bank board is broad enough.(ABC News: Luke Stephenson)

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