New RBA Monetary Policy Board member appointed

Her appointment follows a selection process that included consultation with the opposition and a shortlist prepared by RBA governor Michele Bullock, Treasury secretary Jenny Wilkinson, and former Treasury and Department of the Prime Minister and Cabinet secretary Martin Parkinson.

Cilento has held senior roles spanning economic policy, business and public administration, including CEO of the Committee for Economic Development of Australia, commissioner at the Productivity Commission, and chief economist and deputy CEO of the Business Council of Australia.

The Treasurer said her background would complement the board’s existing mix of expertise as it navigates a period of elevated inflation and softer economic conditions.

“The government thanks outgoing member, Professor Ian Harper AO, for his commitment and contributions to the Monetary Policy Board and previously the Reserve Bank Board,” Chalmers said.

Harper’s term concludes on 31 August, with the economist having sat on the MPB since its establishment in March 2025, following the restructuring of the RBA’s governance arrangements and had previously served on the Reserve Bank Board since 2016.

The board comprises nine members: three ex officio members – Bullock, deputy governor of the RBA Andrew Hauser, and Wilkinson and six external members appointed by the Treasurer.

Experience added to board, says RBA

The RBA said the appointment would add a perspective formed across private, public, and not-for-profit leadership roles.

“Cilento brings extensive experience in economics, public policy and business leadership, including through senior roles across private, public and not-for-profit organisations,” the central bank said.

“Her broad perspective will be a valuable addition to the Monetary Policy Board’s deliberations.”

The bank also acknowledged Harper’s contribution as his term comes to an end.

“Governor Michele Bullock extends her sincere gratitude to Ian Harper AO, whose term on the Monetary Policy Board ends on 31 August, for his significant contributions to monetary policy during his time on the Board and its predecessor, the Reserve Bank Board,” the RBA said.

“Professor Harper brought rigorous analysis, intellectual curiosity and sound judgement to policy deliberations. The Governor thanks Professor Harper for his dedication and insights, which have greatly assisted the work of the RBA over the past decade.”

Cash rate direction moving forward

The MPB last week left the cash rate unchanged at 4.35 per cent and judged policy to be somewhat restrictive while also stating that inflation still remained too high.

During her post-meeting press conference, Bullock emphasised that restoring price stability would involve a challenging adjustment for the broader economy.

“We expect that a period of subdued growth in the economy will be required to bring inflation down sustainably,” Bullock said.

She also refused to rule out further tightening, despite the current pause.

“I think personally, it’s quite possible we might need to go again, and we think the risks are skewed to the upside,” she said.

Yet RBA assistant governor Christopher Kent said in a recent speech that the drop in house prices could lessen the amount of monetary restraint required to return inflation to target.

“Tax changes announced in the federal budget appear to have contributed to reduced demand in the established housing market by lowering the after-tax return from housing for investors,” Kent said.

“All else equal, these changes will tend to reduce the extent to which monetary policy needs to constrain the growth in aggregate demand to help bring inflation back to the RBA’s target.”

All four major banks believe the cash rate will remain at 4.35 per cent until at least mid-2027, yet Bendigo Bank remains more cautious, with its chief economist David Robertson retaining a call for another move higher in November.

“The RBA’s comments in the Monetary Policy Statement were sufficiently hawkish to convince us to retain our view that another hike, most likely in November, is still more likely than not,” Robertson said.

[Related: Bullock flags ‘quite possible’ path to higher rates]