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A former banking CEO has been appointed to the central bank’s new monetary policy board amid a raft of changes at the RBA.
The Federal Treasurer has named former Bendigo and Adelaide Bank boss Marnie Baker and Australian National University professor Renée Fry-McKibbin to the Reserve Bank of Australia’s (RBS) new interest rate-setting board.
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Long-serving CEO and managing director Marnie Baker left her post at the end of August after being at the helm of the banking group since 2018 and working at the bank for 35 years.
Renee Fry-McKibbin - who was on the panel leading the RBA Review in 2022/2023 - has been a professor at the Australian National University for more than 22 years, describing herself as an “economist, educator and scholar”.
According to Federal Treasurer Jim Chalmers, both of the appointments had been proposed to the Opposition in July.
The Treasurer also said existing board members, Telstra director Elana Rubin and businesswoman Carol Schwartz, will move to a new separate governance board that will oversee the RBA’s internal operations but not set interest rates.
The appointments follow the news earlier this month that the RBA will have two boards from 1 March 2025 – one to set the cash rate and another for governance – in one of the largest shake-ups in its 63-year history.
The recommendation to have a separate board to determine monetary policy was made after a review into the RBA found that the existing board was mainly filled with members with business, rather than economic, backgrounds.
It was therefore suggested that an additional two new board members should be appointed to the board structure (currently nine people) who specialise in economics, labour markets, and financial markets to provide “diverse perspectives and knowledge”.
The Monetary Policy Board will therefore comprise the governor (who would chair the monetary policy board), the deputy governor, the treasury secretary and six external members.
Australian treasurer Jim Chalmers commented: “These are high quality, high caliber people, and together they represent the best mix of relevant skills and abilities and experience.
“I'm very proud to say that women will make up the majority of both boards”, he added.
“These appointments follow a thorough, methodical and considered selection process and months of detailed consultation, including with the opposition since July.”
In a press conference after the announcement, Chalmers outlined his rationale for appointing Fry-McKibbin: “[she] did a wonderful job on the Reserve Bank review. She is a person who has thought deeply about the Reserve Bank and about monetary policy more broadly, and I'm really very proud and very grateful that she's accepted this opportunity.”
The new boards are scheduled to begin from 1 March, 2025.
Who will serve on the boards?
The monetary policy board will be made up of the governor, the deputy governor, the treasury secretary and six external members.
Baker and Fry-McKibbin fill the two seats vacated by members who will move to the governance board along with four new external members: former Business Council boss Jennifer Westacott, former Telstra and IBM Australia CEO David Thodey, Business Council board member and business leader Danny Gilbert, and banking industry veteran Swati Dave.
Carolyn Hewson, Alison Watkins, Ian Harper and Iain Ross will remain on the monetary board, with all existing members offered the choice of which board to sit on.
The separate governance board will also have nine members and be chaired by RBA governor Michele Bullock and her deputy governor Andrew Hauser.
Existing board members, Telstra director Elana Rubin and businesswoman Carol Schwartz, will move to the governance board that will oversee the RBA’s internal operations.
Treasury secretary Steven Kennedy and RBA chief operating officer Susan Woods fill the remaining places on the monetary and governance boards, sitting alongside the six external members on each board.
Commenting on the appointments, RBA governor Michele Bullock said: "The new members appointed to the governance board, Swati Dave, Danny Gilbert AM, David Thodey AO and Jennifer Westacott AO, will greatly assist the RBA in supporting and overseeing management as we continue to transform the organisation."
[Related: RBA to have 2 boards from March]
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