Commonwealth Bank of Australia (ASX: CBA) shares are in the green again today, after finishing in positive territory every trading day last week.
CBA shares closed on Friday trading for $103.22 a share and in Monday morning trade, are swapping hands for $104.805 apiece, up 1.54%.
That's today's price action for you.
Now, here's why CommBank is looking to shake up the board over at the Reserve Bank of Australia (RBA).
Why CommBank wants to see some changes with the RBA board
We don't have to tell you that inflation in Australia is running hot.
Whether you're filling up your car, buying groceries, or planning a holiday, you'll have noticed the bigger hit to your pocketbook.
The latest official figures put inflation in Australia at a blistering 7.3%. And that number is expected to edge into the 8% range before beginning to pull back in 2023.
In a bid to tame inflation, the RBA has been steadily hiking interest rates, from the historic low of 0.10% back in May to today's 2.60%. And the central bank is widely expected to raise rates by another 0.25% or even a full 0.50% when the board meets tomorrow.
That's a far cry from what RBA governor Philip Lowe was telling the public last year. At the time, he offered reassurances that rates would remain at rock bottom levels into 2024.
And that, amongst other grievances, doesn't sit well with CBA chief economist Stephen Halmarick, who said those types of forecasts should not be made again.
"Forward guidance should only be based on a set of pre-conditions related to meeting the inflation objective and never calendar based, either implicitly or explicitly," he said (as quoted by The Australian Financial Review).
In a submission to an independent review of the RBA's board, CBA said it wanted to see a major shakeup of the board when it comes to making monthly interest rates decisions, with a greater presence of monetary policy experts joining public servants and business leaders.
"The current structure of the RBA board is not compatible with generally accepted best practice for boards in Australia," Halmarick said. "A widely accepted structure for an effective board is for the board to have nine members in a 3-3-3 model."
And the RBA board should open the door to senior executives from outside the organisation.
"There is a need to facilitate the two-way flow of people into and out of the RBA and the private sector. This could be done at multiple levels across the RBA," Halmarick added.
How have CBA shares been tracking?
CBA shares are up 3.58% year to date, a solid result when compared to the 9.6% loss posted by the S&P/ASX 200 Index (ASX: XJO) so far in 2022.
