The Australian government has announced a significant overhaul of the Reserve Bank of Australia (RBA), which includes the creation of two new boards: the Governance Board and the Monetary Policy Board. Among the prominent appointees is Swati Dave, a highly respected leader in finance, who brings over 30 years of experience in both domestic and international markets.
Ms. Dave’s career has spanned key leadership positions in both the public and private sectors. Notably, she served as the Managing Director and CEO of Export Finance Australia from 2017 to 2022. She currently chairs the Advisory Board of the Centre for Australia-India Relations, and her expertise extends to roles such as Deputy Chair of the Asia Society Australia Board and Advisory Board member for the National Foundation for Australia-China Relations. This wide-ranging background equips Ms. Dave to make a significant contribution to the RBA’s operations.
Her appointment to the RBA’s new Governance Board places her at the heart of the bank’s administrative and operational oversight. Alongside Ms. Dave, other appointees to the Governance Board include Jennifer Westacott AO, David Thodey AO, and Danny Gilbert AM, all of whom bring extensive governance, corporate leadership, and public service experience. Together, they will help strengthen the RBA’s capacity to tackle the complex economic challenges ahead.
Meanwhile, the newly established Monetary Policy Board will take responsibility for setting interest rates. This board welcomes Marnie Baker, former CEO of Bendigo and Adelaide Bank, and Professor Renée Fry-McKibbin, a leading economist from the Australian National University. Their appointments reflect the government’s strategy to diversify the perspectives guiding the RBA’s decision-making.
In explaining the rationale behind these changes, Treasurer Jim Chalmers stated, “These appointments are all about modernising the RBA to help ensure it can continue to meet our current and future economic challenges.” The restructure aims to balance innovation with the RBA’s core independence, ensuring that the bank can effectively manage the evolving economic landscape.
The restructure follows the most comprehensive review of the RBA’s operations in over three decades. While the reforms have been largely welcomed, some concerns have been voiced about potential politicisation, particularly by former RBA governors Ian Macfarlane and Bernie Fraser. Advocates of the changes argue that the introduction of diverse voices and expertise is essential to addressing ongoing challenges like inflation and cost-of-living pressures.
The new Governance and Monetary Policy Boards will begin their work on 1 March 2025, with the first interest rate decision under the updated structure scheduled for 1 April 2025. Swati Dave’s term on the Governance Board will extend until 31 August 2029. To ensure stability, the government has staggered the terms of appointees and extended the tenure of existing members, aiming for a balance between institutional knowledge and new input.
As the RBA embarks on this new chapter, these appointments signify a forward-looking approach to adapting the central bank’s leadership to the needs of the modern economy. With Swati Dave’s proven leadership and deep financial expertise, the RBA is poised to meet the challenges of the future with renewed vigour.
