Recently departed Reserve Bank board member Ian Harper has revealed that nearly one-third of monetary policy decisions over the past decade were split votes, challenging long-held assumptions of central bank unanimity.
Harper said there was “very vigorous” debate among the nine board members under Michele Bullock and her predecessors Philip Lowe and Glenn Stevens, rejecting suggestions from a 2023 independent review that part-time members failed to challenge the central bank’s leadership at meetings.
Harper, a qualified economist, also said the national economy was “drifting” and suggested a stronger focus on government policies that generated economic growth – not just redistribution – was required to lift living standards, especially for younger people.
“Without that, what happens is that people start scrapping over the division of a pie that is actually stagnant or shrinking,” he said in an interview with The Australian Financial Review.
Harper stepped down from the RBA’s interest rate-setting committee at the end of last month, after serving on the board since 2016.
Source: https://www.afr.com/policy/economy/rba-board-split-on-rate-decisions-at-one-in-three-meetings-20260911-p60wgn