Wong rejects calls for RBA intervention

Finance Minister Penny Wong says the government will not interfere with the floating Australian dollar or intervene in Reserve Bank of Australia (RBA) interest rate decisions, after rejecting calls by union heavyweight Paul Howes for the government to examine the RBA’s charter.

Howes, the Australian Workers’ Union (AWU) national secretary, had sought a review of the RBA’S monetary policy charter after claiming it had consistently made incorrect calls on interest rates.

“For some bizarre reason in this country, it seems like it’s religious heresy to criticise the decisions of the RBA,” Howes said, according to AAP.

But Senator Wong told ABC Radio the independence of the RBA and the floating dollar benefited Australia.

“The settings that have served Australia well, including through this investment boom, include the independence of the Reserve Bank in setting interest rates and the floating dollar,” she told ABC Radio.

Howes said the rising dollar and interest rates were hurting Australian manufacturers.