Michele Bullock has been announced as the next governor of the Reserve Bank of Australia (RBA), replacing incumbent Philip Lowe, who has served in the role since 2016.
The decision was announced by Prime Minister Anthony Albanese and Treasurer Jim Chalmers at a press conference in Canberra on Friday morning.
Ms Bullock, who will become the first female governor in the RBA’s history, had been considered among the frontrunners to succeed Dr Lowe, whose seven-year term is due to expire in September.
“The Treasurer has made a first-rate appointment. I congratulate Michele on being appointed governor,” Dr Lowe said in a statement on Friday.
“The Reserve Bank is in very good hands as it deals with the current inflation challenge and implementing the recommendations of the review of the RBA. I wish Michele all the best.”
Ms Bullock was appointed deputy governor of the central bank last year, after serving as assistant governor (financial system) since 2016. She has held a range of senior management positions since first joining the RBA in 1985 as an analyst.
“I am deeply honoured to have been appointed to this important position,” Ms Bullock said on becoming governor.
“It is a challenging time to be coming into this role, but I will be supported by a strong executive team and boards. I am committed to ensuring that the Reserve Bank delivers on its policy and operational objectives for the benefit of the Australian people.”
Dr Lowe will remain governor until his term ends on 17 September, with Ms Bullock beginning her seven-year term on 18 September. Meanwhile, the RBA indicated that the deputy governor position will be filled by the Treasurer “in due course”.
Describing the appointment as “history-making”, Dr Chalmers said that Ms Bullock was “the person best placed to the Reserve Bank into the future”.
“Michele is an outstanding economist but also an accomplished and respected leader. Her appointment best combines experience and expertise with a fresh leadership perspective at the Reserve Bank as well,” he said.
Earlier this week, Dr Lowe reiterated that he would be happy to remain in the role of governor.
“I’ve said before, if I was asked to continue in the role, I would be honoured to do that and I would continue. If I’m not asked to continue in the role, I’ll do my best to support my successor,” Dr Lowe said on Wednesday.
Both the Treasurer and the Prime Minister thanked Dr Lowe for his service to the RBA, the economy and the country over a career spanning more than four decades.
“Phil Lowe goes with our respect, he goes with our gratitude and he goes with dignity, and I want to make that clear,” Dr Chalmers said.
So what was the point of the RBA review?
We have a Governor of the reserve bank who straight from University has been indoctrinated in the Public Service Gravy Train – having never run a small or large business how can one relate to the average Australian? Status Quo to continue – Government Puppet – shame as more interest rates to come
Nothing is going to change nor should it. They need to get their credibility back and remain independent from the government.