Jim Chalmers’ spray at the RBA is embarrassing

There’s nothing in the Reserve Bank Act, or in the concept of central bank independence more generally, that says the treasurer can’t be as critical of the RBA as he likes. There’s a lot of silly hand-wringing about “inappropriateness” every time this happens. Our economists should not be so delicate. A government at war with its own money printer is a sign of the bank’s independence, rather than a lack of it.

But Jim Chalmers’ salvo against the RBA this close to an election is embarrassing and desperate. Foreshadowing the anaemic GDP growth figures released yesterday, the treasurer declared that the fault is all with the RBA: it is “smashing the economy” by keeping interest rates high to slow inflation.