The Wire

Treasurer Jim Chalmers keeps refusing to endorse another term for Reserve Bank Govenor Philip Lowe, whose 7 year term is up this year.

He says he will make a decision in June.  This will be after the Inquiry into the RBA, so perhaps ammunition may come from that direction.

However this may unsettle the markets as it could signal a move away from the traditional independence given to the Reserve Bank, which in some ways works in the Government’s favour if the economy takes a dive.