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PM says RBA shouldn't set salaries

Prime Minister Julia Gillard has backed Treasurer Wayne Swan's move to strip the Reserve Bank of powers to set board members' salaries.

RBA
The Reserve Bank of Australia warns of more pressure on interest rates. (AAP)

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Source: AAP


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The move comes after the RBA remuneration committee approved a $234,000 pay increase for RBA governor Glenn Stevens.

Mr Stevens is presently paid more than one million dollars a year.

Mr Swan's indicated the Remuneration Tribunal will decide the salaries of RBA board members in future.

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The tribunal already sets the pay of politicians, public servants and judges and Mr Swan says RBA board members deserve the same treatment as the rest of the commonwealth public service.


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