2024-03-22
The Government’s proposed changes to the RBA will make the bank and the country less democratic and represent a complete capitulation to finance capital, the Greens say.
"The proposed removal of section 11 from the RBA Act represents a breathtaking attack on democratic safeguards, stripping away government power to shield mortgage holders and renters from unjust interest rate hikes," Greens Economic Justice Spokesperson Senator Nick McKim said.
“Section 11 makes it clear that the ultimate responsibility for monetary policy lies not with unelected, unaccountable technocrats, but with a democratically elected government accountable to the people of Australia.:
“It is staggering that Jim Chalmers is proposing to take us so far down the road of neoliberalism that even Paul Keating and Peter Costello think he is going too far.”
"The passage of this bill in its current form would mark a capitulation to neoliberal interests, ignoring the urgent need for policy reforms that address the real challenges facing Australians today.”
The Greens' dissenting report also criticises the RBA Review's refusal to incorporate climatic and ecological stability into the Bank's objectives, despite clear evidence of climate-induced supply-side shocks.
"It's paramount that the RBA recognises the primacy of the climate and ecological crises as a core objective, allowing for a more responsive and sustainability conscious monetary policy," said Senator McKim.
"The Review's failure to consider the role of central bank credit in driving land price inflation has fueled a neo-feudalism crisis, pushing the Australian dream of home ownership out of reach for many.”