One Nation proposes overhaul of Reserve Bank operations

One Nation has announced plans to significantly reshape the Reserve Bank of Australia, arguing the central bank needs a broader mandate to address inflation. Treasury spokesman Barnaby Joyce stated that the party intends to review the bank's operations, suggesting it should transition from its current focus on interest rates to a more active advisory role regarding government spending and regulatory policy. Joyce described the current reliance on interest rate adjustments as a blunt instrument that has failed to consistently keep inflation within the target band of 2 to 3 per cent over the past five years. The proposal envisions the Reserve Bank providing public advice on government fiscal decisions that contribute to cost-of-living pressures. This shift would represent a major departure from the bank's traditional role as an independent institution focused primarily on monetary policy. While the party has not yet detailed the full mechanics of this plan, the announcement highlights growing political debate over how Australia manages economic stability. The government and mainstream economic experts have historically maintained that the Reserve Bank's independence is essential for effective monetary policy and market confidence. As the debate continues, the focus remains on whether the current institutional framework is sufficient to manage modern economic challenges or if structural changes are required to better align policy with public needs.