RBA might not give 'much focus' to full employment

Cornerstone Group Senior Director James Cullen has weighed in on a war of words between former Labor Prime Minister Paul Keating over decisions made by the Reserve Bank of Australia, saying it was likely “everyone’s a little bit in the right”.

Treasurer Josh Frydenberg this morning hit back at Mr Keating, who claimed the RBA did not do enough to “shoulder the economic load caused by COVID-19”.

“This was an extraordinary unnecessary attack from Paul Keating,” Mr Frydenberg told Sky News.

“The reality is the government is in charge of fiscal policy and the Reserve Bank is in charge of monetary policy."

Speaking to Sky News, Mr Cullen said “the RBA obviously does have a focus on price stability and inflation but sometimes we do forget that full employment is very much in the legislation and the charter that the RBA has with the government”.

“I think sometimes there isn’t that much focus on that aspect,” he said.

“I think there’s actually some real practical applications where the RBA could probably do more than what its doing but ultimately of course governments need to be really focusing on fiscal policy first.”

Видео RBA might not give 'much focus' to full employment канала Sky News Australia