Michele Bullock named as next RBA Governor, Philip Lowe’s term comes to an end

Prime Minister Anthony Albanese has announced who will be the next RBA Governor, with Philip Lowe to be dumped after seven years in the top job.

Australia has appointed its first female governor Michele Bullock to lead the RBA.

Prime Minister Anthony Albanese made the announcement today hailing the current Reserve Bank of Australia governor Philip Lowe during his seven-year term.

However, he will not be reappointed to a second term despite indicating his willingness to do so.

“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,’’ Treasurer Jim Chalmers said.

“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.”

Ms Bullock will make history as the first woman to lead the RBA in its 63-year history.

“She will oversee the implementation of the recommendations of the Review of the Reserve Bank of Australia, which will ensure we have the most effective central bank and monetary policy framework to meet our current and future economic challenges.”

Ms Bullock is an RBA “lifer” having joined the Bank as an analyst in 1985 and has been Deputy Governor since April 2022.

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.

The Prime Minister said her appointment followed a long, methodical, considered and consultative process which led to the Cabinet endorsing the Treasurer’s recommendation today.

“We sincerely thank Dr Philip Lowe for his leadership since his appointment in September 2016 and acknowledge the outstanding commitment he has given to the RBA over his 43 years there,’ Mr Albanese said.

Michele Bullock will make history as the first woman to lead the RBA in its 63-year history. Picture: David Geraghty

Treasury Secretary Steven Kennedy was a frontrunner for the job. Picture: NCA NewsWire / Martin Ollman

Finance Department secretary Jenny Wilkinson was also considered for the role. Picture: AAP Image/Mick Tsikas

Ending months of speculation, Mr Albanese confirmed Dr Philip Lowe would be evicted from the top job on September 18.

The mild-mannered central banker who infamously predicted interest rates would not go up until 2024, Dr Lowe was later forced to apologise for inadvertently misleading Australian borrowers.

He earns around $1 million a year including super and his seven year term expires in September.

Dr Bullock has worked at the RBA since 1985. However, the Treasurer said he was convinced she was the right person to lead the reform process.

“It’s the best combination of that experience and expertise but also a fresh leadership,’’ Dr Chalmers said.

“One of the things that I have really admired about Michelle Bullock is her contribution to the Reserve Bank review. Michelle has thought deeply about how we take the bank forward into the future.

“She does have a lot of experience. A respected leader, and that’s what we treasure.”

Reserve Bank of Australia Governor Philip Lowe will not have the top job after September. Picture: NCA NewsWire / Nikki Short

Treasurer Jim Chalmers lashed Liberal leader Peter Dutton. Picture: NCA NewsWire / David Crosling

Treasurer lashes criticism of ‘tainted’ candidates

The leading candidates for Mr Lowe’s replacement were Ms Bullock, Finance Department secretary Jenny Wilkinson and Treasury secretary Steven Kennedy.

On Thursday, Liberal leader Peter Dutton suggested that anyone who had worked closely with the Albanese Government was “tainted”.

“We’ve made it clear to the government we don’t believe it should be somebody who is ‘familiar’, if you like, to the government, somebody who has been working very closely with the Treasurer, or the Finance Minister, or the Prime Minister,’’ Mr Dutton told 2GB’s Ray Hadley.

“The independence of the position is sacrosanct and that’s why we want to support – in a bipartisan position – the ultimate appointment.

“We’ll support the government when they make the announcement, but not if it’s somebody who is tainted, or can be seen to be tainted – even if it’s somebody of a very high calibre and character – and whether it’s been somebody that’s worked closely with the Liberal or Labor government before.”

Dr Chalmers lashed Mr Dutton’s comments.

“Peter Dutton is so relentlessly negative that he’s even now complaining about things that haven’t happened,’’ Dr Chalmers said.

“This is bordering on pathological and when it comes to and to describing people of the calibre of Stephen Kennedy and Jenny Wilkinson, who have advised both sides of politics in a frank and fearless and impeccable way as somehow tainted?

“Well, it’s not those two who are tainted and we won’t be taking lectures about the public service from the part of robodebt.”

Mr Dutton said he was concerned about the replacement being “tainted”. Picture: NCA NewsWire / Martin Ollman

The RBA top job comes with a $1 million salary. Picture: NCA NewsWire / Nicholas Eagar

RBA changes

Under planned changes, the current RBA board will be stripped of its power to set interest rates.

The huge shake up will see a panel of monetary policy experts meet eight times a year instead of 11 and conduct “more in-depth discussions including of the forecast, strategy and other monetary policy issues”.

The Reserve Bank governor will also hold press conferences after each meeting on interest rates to explain decisions to homeowners under a major shake-up of the central bank.

If he is dumped, Dr Lowe will have plenty of time to eyeball the Treasurer next week on a long-haul flight.

The pair are set to fly to India for a Group of 20 meeting of finance ministers and central bank governors on Sunday.

But Dr Lowe has indicated that while he would loyally serve another term if asked, if he isn’t he will do all he can to help his successor.