When Philip Lowe’s term as governor of the Reserve Bank of Australia (RBA) expires in two months, Michele Bullock will take over.
Since the RBA’s founding in 1959, Bullock will be the institution’s first female governor.
The news that Lowe’s seven-year tenure as governor won’t be renewed when it ends on September 17 was only made public this morning.
Bullock was described as “eminently qualified” by Prime Minister Anthony Albanese.
Ms. Bullock is unquestionably qualified to head this important national organisation after nearly forty years of service to the RBA, most recently as the deputy governor, according to Albanese.
“Ms Bullock is a skilled economist with extensive RBA experience, including serving as deputy governor and chair of the Payment Systems Board.”
The choice of Bullock, according to the prime minister, was made after “a rigorous process” that involved opposition consultation.
“Her appointment best combines experience and expertise with a fresh leadership perspective at the Reserve Bank,” stated Treasurer Jim Chalmers.
He claimed that choosing the next RBA governor had not been an easy decision.
In his words, “We have approached this in the most methodical and considered way that we could. This comes after months of deliberation and consultation.”
“This is one of the most significant appointments our government will make,” the speaker said.
Lowe received thanks from Chalmers and Albanese for his efforts.
“We thank Phil Lowe for more than four decades of dedication, commitment, and service, not just to the Reserve Bank and not just to the economy, but to our country as well,” Chalmers remarked.
“Phil Lowe departs with our appreciation. He departs with our appreciation and with dignity.
I want to be clear about that.
Chalmers said that it was beneficial to put an end to rumours regarding the future governor.
“It’s important to note that the decision was not made until the cabinet as a whole made it today, but I’ve believed for a while that Michelle Bullock is the best candidate to lead the bank into the future.”
The treasurer stated that Phil finishing after seven years was “not wildly out of the norm.”
Five of the eight governors who have served up to this point have not had their terms extended, therefore historically, term extensions for governors have been the exception rather than the rule.
According to Chalmers, the opposition would support the election of a new governor.
I anticipate their complete support for this appointment given the standards that Peter Dutton outlined during the week.
Last week, Liberals leader Peter Dutton stated the position needs to be appointed by a non-political individual.
Lowe’s time as governor ends on September 17, and Bullock will take over on September 18.
When asked if his tenure at the central bank would be coming to an end on Wednesday, Lowe responded that he would back the government’s choice.
According to what he previously stated, “in terms of my own position, if I was asked to continue in the role, I would be honoured to do that and I would continue.”
“I will do my best to support my successor if I am not asked to remain in the position, and the treasurer has stated he will make a statement by the end of this month.
I’m at a loss for words at this point.
Monday’s G20 summit in India is still scheduled to include Lowe travelling with Chalmers.
As Aussie borrowers struggled with 12 interest rate increases in 15 months, calls for Lowe’s departure became louder in recent months.
Lowe’s suggestion that suffering renters could just move or seek housemates in order to offset soaring costs sparked particularly virulent criticism and was dubbed “tone-deaf.”
Lowe was last week backed by liberal senator Jane Hume, who noted that “he is definitely well qualified to stay in the position.”
I do believe the government has unfairly demonised him by attributing high interest rates to him and saying, “See, that’s his fault,” she said.
Lowe, according to Hume, was “only doing his job” to keep inflation within a 2 to 3% range.
“Of course the RBA has to do the hard work,” she said, “if the Government isn’t doing their fair share of heavy lifting.”
