The 2 New Faces Who Will Decide Interest Rates From 2025 Revealed

A man walks past the Reserve Bank of Australia in the central business district of Sydney on June 7, 2022. - Australia's central bank raised interest rates by a higher-than-expected half percentage point on June 7 and warned of more increases, trying to rein in "significantly" increased inflation. (Photo by Muhammad FAROOQ / AFP) Photo by MUHAMMAD FAROOQ/AFP via Getty Images

Australian Treasurer Jim Chalmers has revealed multiple new faces on the Reserve Bank of Australia (RBA) board amid a major shakeup ahead of the election.

The new board members will commence their roles in March, leaving the door open for a decision on interest rates prior to the next federal election.

The board will be split up into two, following an independent review that recommended a monetary board, with a sole focus on setting interest rates, and a governance board that would focus on managing general operations.

All current members will remain, with Carol Schwartz and Elana Rubin moving the the governance board. This opened up two positions on the monetary board.

Australian National University Professor Renee Fry-McKibbin and former Bendigo and Adelaide Bank Chief Executive Marnie Baker and will take up these positions on the monetary board.

Four new positions on the governance board will be taken up by former Telstra CEO David Thodey, former Business Council of Australia CEO Jennifer Westacott, Glibert and Tobin Chair and co-founder Danny Gilbert, and senior banking executive Swati Dave.

“The new boards will begin from the 1st of March—so that it’s after the February meeting and not before—and it’s also worth pointing out that it is still the case that most of the monetary policy board was first appointed to the existing board by the Coalition,” Chalmers said in a press conference.

“You’ll also see that I’ve staggered the term lengths to ensure that we can continue to balance the perspectives of existing members and new members.”

Chalmers said he was proud that women would make up the majority of both of the new boards.

“What I am announcing today is the best combination of existing members and new members,” he said.

“These are first class first rate people with the right skills and with decades of relevant experience.”

Chalmers said the government had asked for suggestions from the Opposition on the board make up because they took their responsibilities to consult very seriously.

“You all know having followed this very closely just how much effort and work we put into trying to make this as bipartisan as it could be,” he said.

The decision to have two boards from March 2025 passed both houses of parliament in the last sitting week of the year, amid 11 other treasury bills passing the Senate.

Coalition Worried About ‘Sack and Stack’

However, in response to the news Shadow Treasurer Angus Taylor said it was the wrong time to “sack and stack” the RBA board.

He said the key goal of the government should be achieving a sustainable reduction in inflation and interest rates.

“Australia deserves an independent, credible and capable Reserve Bank of Australia. It is critical the government demonstrate its commitment to this principle. The jawboning of the Reserve Bank by the Treasurer, Labor frontbenchers and Labor surrogates must end. The proof of these reforms will be in the outcomes over the next 12 months,” he said in a statement seen by The Epoch Times.

Taylor also said the Opposition wanted all members of the current board transferred across to the monetary setting board.

“Jim Chalmers chose to ignore this. It is disappointing that the government has repeatedly broken bipartisanship throughout this process, including by telegraphing private meetings through the press and failing to respond promptly to constructive engagement in the legislative drafting,” he said.

RBA Welcomes the Decision

RBA Governor Michele Bullock welcomed the appointment of new members to the governance board and monetary policy board.

“In particular I extend my gratitude to Carol Schwartz AO and Elana Rubin AM for their invaluable contributions to the Reserve Bank Board and thank them for their dedication and willingness to ensure continuity on the Governance Board,” she said.

“I also welcome the agreement of current members of the Reserve Bank Board to continue to serve on the Monetary Policy Board.”

Bullock said she was looking forward to working with Marnie Baker and Renee Fry-McKibbin and linked their appointments to keeping inflation in check.

“Their expertise and insights will be vital as we continue our efforts to bring inflation back to target,” she said.

“The new members appointed to the Governance Board, Swati Dave, Danny Gilbert AM, David Thodey AO and Jennifer Westacott AO, will greatly assist the RBA in supporting and overseeing management as we continue to transform the organisation.”

Also responding to the announcement, AMP chief economist Shane Oliver expressed confidence in the board continuing its current trajectory and predicted a February rate cut.

“Given seven of existing nine board members will go to monetary policy Board with only two new members it suggests a high degree of continuity with little change to RBAs reaction function,” he said on X.

“[February] remains live for first cut.”