(Image: Mitchell Squire/Private Media)
(Image: Mitchell Squire/Private Media)

With the review of the Reserve Bank now launched by Treasurer Jim Chalmers, the array of vested interests, ideologues and axe-grinders that make up those who've pushed for a review will get busy on their submissions.

A key area for the review, to be conducted by Canadian central banker Carolyn Wilkins, Professor Renée Fry-McKibbin and veteran bureaucrat Gordon de Brouwer, will be the composition of the RBA board. Unions want a union rep; academic economists want an academic economist rep; The Australian Financial Review warns against any "politically correct" shift away from the board being dominated by business representatives.

Without extensive consultation with previous board members, it will be difficult for the review to gauge whether changing the make-up of the board, or the appointments process, will have a material effect on RBA decisions. Rate hikes during both the 2007 and 2022 election campaigns, along with Philip Lowe's outspokenness on fiscal and wages policy, suggest there's no problem with the independence of the board; the fact that Tony Abbott wanted to impose an outsider on the Bank to "fix" it suggests the presence of business leaders on the board has done the Liberals no favours.