In the 1990’s, the RBA was given its independence in regards to controlling monetary policy. This means it has complete control over interest rate settings without any override by the parliament.
This step is just one of many that has undermined Australia’s democracy.
When the RBA gets it wrong it’s the taxpayers who pick up the tab.
For example. the RBA has leant $188 billion in cheap loans to private banks who can lend on to Australians at much higher rates.
The RBA also refuses to disclose details of conversations it has with the Bank of International Settlements. I suspect that the RBA takes advice (or orders) from the BIS when it comes to setting FX and interest rates. These discussions should be completely transparent.
Same for Australia’s gold reserves. The RBA cannot explain why they keep Australia’s gold with the Bank of England when the BOE have acknowledged the presence of fake gold bars and serial numbers.
It’s time the RBA was held accountable to the Executive and Parliament. Do you agree?
