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Killer Keating: they do what I tell them



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DR. JOHN HEbJSON M.R. TEL No. 02 3287856 13,09,89 12=15 P.02

P A R L I A M E N T O F A U S T R A L I A

H O U S E O F R E P R E S E N T A T I V E S (? PRESSDR JO H N R. H E W S O N , M .P. SHADOW MINISTER FOR FINANCE MEMBER FOR WENTWORTH RELEASE No.126 /89

13 September 1989

KILLER KEATING: THEY DO WHAT 1 TELL THEM

Mr. Keating's comments last night about the Reserve Bank's independence confirm that he doesn't believe in independence and accepts full responsibility for Australia's economic mess.

Mr. Keating's "harmonious and fruitful" relations with the Bank may have given him a warm inner glow but he has sold out on inflation control. -

This relationship has delivered an inflation rate stuck at almost 8 per cent. .

Some success story! ‘

There was no doubt left in anyone's mind about the Bank's lack of independence following Mr. Keating's famous statement that "they do what I tell them to do, you can be sure of that".

The Reserve Bank must have more effective independence in order to achieve its set objective of reducing the rate of inflation.

It is essential for the Reserve Bank to be free to pursue a medium term apolitical monetary policy if the exchange rate and interest rates are to be stabilised as part of a better climate for Australian business and consumers.

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