The Albanese government has appointed two prominent Australians to the Reserve Bank’s new monetary policy board and revealed the full composition of both boards ahead of the 1 March start date.
Renée Fry-McKibbin and Marnie Baker are the government’s picks for the Reserve Bank’s newly established monetary policy board.
In a statement issued on Monday, Treasurer Jim Chalmers said Baker, former CEO of Bendigo and Adelaide Bank, brings 35 years of financial services experience. She was also deputy chair of the Australian Banking Association.
Professor Renée Fry-McKibbin, an expert at macroeconomics at the Australian National University, also joins the board after serving on the RBA review panel, which was launched in May 2022 after the government took office. According to the Treasurer, Fry-McKibbin has extensive experience in leadership roles within the economic and social sciences community, both in Australia and the United Kingdom.
Both appointments are for five-year terms.
“We’ve selected first-rate Australians and we’re confident they have the right skills and experience to help lead this vital economic institution,” Treasurer Chalmers said.
“The appointments are all about modernising the RBA to help ensure it can continue to meet our current and future economic challenges.”
The Treasurer also confirmed that he extended an invitation to existing Reserve Bank board members to transition to the new monetary policy board, which includes automatic appointments for RBA governor Michele Bullock, deputy governor Andrew Hauser, and Treasury secretary Steven Kennedy.
Four of the six remaining board members accepted the offer to join the monetary policy board, including Carolyn Hewson, Ian Harper, Iain Ross, and Alison Watkins.
The other two, Carol Schwartz and Elana Rubin, opted to join the governance board, taking up roles as deputy chair and member, respectively.
The remaining appointees to the new governance board are Jennifer Westacott, David Thodey, Danny Gilbert, and Swati Dave.
“These appointments will ensure continuity on both boards, consistent with the preference of the RBA governor. Each member has made a significant contribution to the RBA board and I am grateful for their continued service,” Chalmers said.
“I have staggered the term lengths of new appointments and extended the terms of existing external members to ensure both boards have the right balance of experience and fresh perspectives. This approach is consistent with the RBA review recommendations.”
The Treasurer noted that all appointments were made based on advice from a panel consisting of the Treasury Secretary, the Reserve Bank governor, and former secretary to the Treasury and Department of the Prime Minister and Cabinet, Martin Parkinson.
“An open and transparent expression of interest process was run, and candidates were shortlisted by the panel. Candidates were shortlisted against a skills matrix, to ensure there was the right mix of skills and experience on both boards," Chalmers said. “This is the process that was set out in the RBA review and the government has stuck to it.”
The new boards are scheduled to commence from 1 March next year.
In a statement issued shortly after the Treasurer’s announcement, the RBA governor said it welcomes 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,” Bullock said.
“I am looking forward to working with Marnie Baker and Renee Fry-McKibbin. Their expertise and insights will be vital as we continue our efforts to bring inflation back to target,” she added, also extending her congratulations to the new members appointed to the governance board.
Shadow treasurer Angus Taylor, however, warned the government’s appointments risk undermining continuity and independence at a crucial time for tackling inflation and lowering interest rates.
“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.”
