Senator calls for more scrutiny of RBA

Liberal Democrat David Leyonhjelm has called for more regulation of the "enormous" power wielded by the central bank.

Senator Leyonhjelm says the Reserve Bank of Australia answers to no one, with the ability to invest taxpayer funds how it wants and create inflation without oversight from parliament or government.

"We should insist the Reserve Bank justify its actions to taxpayers, whose money it lends to others without informing them," he writes in the Australian Financial Review on Friday.