The government has given the green light for RBA deputy governor Michele Bullock to replace her boss, outgoing governor Philip Lowe, in the spring.
Bullock, a long-time economist who has worked for the central bank for more than 30 years, has been endorsed by the cabinet and prime minister Anthony Albanese to replace Lowe as the head of the independent RBA.
She served as deputy governor for just over a year before news broke that she would succeed Lowe on Friday.
In a statement, treasurer Jim Chalmers said Bullock’s appointment struck an “optimal balance” between experience, expertise and new perspectives.
“Ms Bullock is the right person to lead the RBA into the future and ensure we have the world’s best and most effective central bank.
“She is an outstanding economist and leader with a deep understanding of the RBA’s role and operations, built up over her long and distinguished career with the central bank,” Chalmers said.
“We are confident that Ms Bullock will provide the strong leadership and stability necessary for the RBA to navigate an increasingly complex and rapidly changing economic environment.”
Bullock will be Australia’s ninth Reserve Bank governor and is the first woman appointed to the monetary policy role in 63 years.
Her seven-year term will commence on September 18, with one of the first orders of business being to oversee the implementation of reforms recommended by the Review of the Reserve Bank of Australia.
“[This] will ensure we have the most effective central bank and monetary policy framework to meet our current and future economic challenges,” Chalmers said, adding her appointment followed a “methodical and considered” consultation prior to cabinet approval.
“We are confident that Ms Bullock will provide the strong leadership and stability necessary for the RBA to navigate an increasingly complex and rapidly changing economic environment,” he said.
Highlighting Bullock’s credentials, the treasurer noted she joined the RBA as an analyst in 1985. She has held roles responsible for the central bank’s financial system, business services, the currency and payments system.
“She holds a Masters of Science (Economics) degree from the London School of Economics and a Bachelor of Economics (Hons) from the University of New England,” Chalmers said.
Lowe has had an uncomfortable few months as the scapegoat for the way he and the board chose to wrestle with inflation in a tough economic climate.
The Labor government acknowledged his “outstanding commitment to the RBA” over a 43-year career and his service as head of the independent central bank since 2016.
“Dr Lowe has overseen the bank through a period of exceptional economic disruption and uncertainty, including the impacts of the COVID-19 pandemic and Russia’s invasion of Ukraine,” Chalmers said.
“We respect and appreciate the remarkable dedication and contribution he has made to our country and our economy, and the way he has conducted himself in a difficult role at a challenging time.”
The government will make an announcement about filling the deputy governor vacancy.
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