Michele Bullock named as replacement for Lowe at RBA

Deputy RBA governor Michele Bullock will replace Philip Lowe at the helm of the central bank.
Prime Minister Anthony Albanese announced Ms Bullock as the new Reserve Bank of Australia governor on Friday morning.
“This appointment follows a rigorous process. including consultation with the opposition,” he said.
“After close to four decades of service to the RBA, most recently as the deputy governor, Ms Bullock is eminently qualified to lead this national institution. Michelle’s will be an important job. And an important time with the challenges that we face globally.”
Ms Bullock will be the first woman to lead the RBA. Her term will start on September 18.
In footage from Mr Albanese’s office immediately after Friday’s announcement, she said she was honoured to take on the governor’s role.
“I think a big part of my role is going to be … leading the bank through change, which is a very important part of the next days also,” she said.
Dr Lowe described Ms Bullock as a “first-rate appointment” in a statement released by the bank.
Ms Bullock had been among the leading candidates to replace Dr Lowe, after it was confirmed on Friday morning that he would not be reappointed when his term expires in September.
Other high-profile candidates were Treasury secretary Steven Kennedy and Finance Department secretary Jenny Wilkinson.
Treasurer Jim Chalmers said Ms Bullock combined experience and expertise with fresh leadership for the Reserve Bank.
This is a history-making appointment. Michele Bullock will become the first woman to ever lead the Reserve Bank in this country,” he said.
“Michele Bullock is the person best-placed to take the Reserve Bank into the future. Michele is an outstanding economist, but also an accomplished and respected leader.”
Dr Chalmers thanked Dr Lowe “for more than four decades of dedication and commitment and service, not just to the Reserve Bank and not just to the economy, but to our country as well”.
“Phil Lowe goes with our respect, he goes with our gratitude, and he goes with dignity, and I want to make that clear,” he said.
Dr Lowe has faced criticism following multiple interest rate hikes in the past year, after previously saying the cash rate would not increase until 2024.
He had previously said he was happy to stay on as RBA governor if asked to do so.
Dr Chalmers said of the eight governors Australia’s central bank has had so far, five had not had their terms extended.
“I think the average tenure for Reserve Bank governor is a little under eight years and Phil brings up seven years, and so it is not wildly out of the norm that Phil will finish up after seven years,” he said.
Despite that, the final decision on Dr Lowe’s replacement was not made until Cabinet met early on Friday.
“It has been my view for a while now that Michele Bullock is the best person to take the bank into the future. It is a wonderful appointment, I think, and we are really proud to announce it today,” he said.
Dr Chalmers also took aim at Opposition Leader Peter Dutton, who had warned that public servants – such as Mr Kennedy and Ms Wilkinson – were too close to the government to be appointed to such jobs.
“This is bordering on the pathological when it comes to [Mr Dutton’s] negativity, and to describe people of the calibre of Steven Kennedy and Jenny Wilkinson, who have advised both sides of politics in a frank and fearless and impeccable way … it is not those two who are tainted,” he said.
“We won’t be taking lectures from the party of Robodebt, for example. So I say about Jenny Wilkinson and Steven Kennedy – this is the best of all worlds. We get Michele Bullock at the Reserve Bank and we get Steven Kennedy at the Treasury and we get Jenny Wilkinson at Finance.”
Dr Lowe will still accompany Dr Chalmers to a G20 meeting in India this weekend.