RBA Reforms Pass: Interest Rate and Corporate Governance Boards Split

The move comes after the Greens secured key concessions from the Labor government.

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

Australia’s central bank will soon operate with two distinct boards, following an agreement between the federal government and the Greens that led to the passing of a new bill.

Treasury Laws Amendment (Reserve Bank Reforms) Bill 2023 seeks to create two RBA boards instead of one: a board to make interest rate decisions, and the other to take care of corporate governance.