Australia’s Labour Party calls for review of RBA, fiscal-monetary policy

Australia’s opposition Labour Party has asked for a review of Reserve Bank of Australia’s (RBA) monetary policy and the ruling government’s fiscal policy, as they under criticism due to the economic weakness ahead of the country’s first recession last year, Bloomberg reports.

“The lion’s share of the blame for years of weak wages, insecure work and flatlining business investment belongs to the Morrison government and its economic mismanagement,” Shadow Treasurer Jim Chalmers said Wednesday.

He added: “But that doesn’t mean we shouldn’t review the RBA’s goals and levers and the interaction of fiscal and monetary policy.”

“It’s a crucial institution but not beyond criticism or reproach,” Chalmers argued.

Market reaction

The above comments are likely to exert additional pressure on the aussie dollar, as AUD/USD currently trades at 0.7609, down 0.06% so far.