Labor should not replace Philip Lowe with anyone closely linked to the government and risk the “sacrosanctity” of the position, Opposition Leader Peter Dutton has warned.
The Reserve Bank governor’s term is up in September, and while it could be extended for another three years, it’s widely expected that Treasurer Jim Chalmers will imminently announce his successor.
Names understood to be on the shortlist include deputy governor Michele Bullock, finance department secretary Jenny Wilkinson and Treasury secretary Steven Kennedy.
Dr Chalmers will take his recommendation to cabinet to vote on, but ahead of that – in a show of bipartisanship – Dr Chalmers has spoken with shadow treasurer Angus Taylor about the shortlist.
Mr Dutton said he appreciated the engagement the government had extended on the process but warned Labor against tainting the independence of the Reserve Bank by making “political appointments”.
“So whoever the person is who is appointed, we’ve made it clear to the government we don’t believe it should be somebody who is familiar, if you like, to the government, somebody who has been working very closely with the Treasurer or the Finance Minister or the Prime Minister,” Mr Dutton told 2GB.
“The independence of the position is sacrosanct, and that’s why we want to support it in a bipartisan position.”
Mr Dutton said the opposition would not support the government if it announced somebody who “is tainted, or can be seen to be tainted, even if it’s somebody of a very high calibre and character”.
“And whether it’s been somebody that’s worked closely with the Liberal or Labor governments, the Reserve Bank has to have independence because they need to make tough calls even if they’re unpopular calls, and we don’t want somebody there who’s been involved in the political process at a senior level,” he said.
“And that’s a very important point to make, and we’ve made that clear to the government as well.”
There are expectations the announcement on the future of the governor role could come as soon as next week after Dr Chalmers and Dr Lowe travel to India together this weekend for a G20 meeting of central bank governors and treasurers.
On Wednesday, Dr Lowe announced the RBA’s response to the 51 recommendations set by a review into the central bank.
Dr Lowe announced that from next year, the RBA would meet eight times a year to discuss monetary policy – down from 11.
A chief operating officer will be employed to help progress the bank.