RBA Reforms Face Major Hurdle as Greens Demand Rate Cut
- Left-wing Greens say they will only pass bill if policy eased
- Outlook for legislation to split RBA board now looks clouded
Australian Treasurer Jim Chalmers’ plans to overhaul the Reserve Bank suffered a major setback after the left-wing Greens party demanded the government order the central bank to cut interest rates.
Greens economic spokesman Nick McKim said the minority party would withhold its support for the reform bills until rates had been lowered, and if the RBA didn’t cut them at Tuesday’s board meeting, Chalmers should force it to do so. The government has never used its reserve powers to overrule the central bank.