New RBA Governor to be Dr Philip Lowe who will replace Glenn Stevens

RESERVE Bank of Australia deputy governor Philip Lowe will replace outgoing chief Glenn Stevens, Treasurer Scott Morrison has revealed.

Reserve Bank Governor Glenn Stevens will be replaced by Dr Philip Lowe. Picture: Renee Nowytarger

RESERVE Bank of Australia deputy governor Philip Lowe will replace outgoing chief Glenn Stevens, Treasurer Scott Morrison has revealed.

The deputy governor will step up to the top job when his boss’s 10-year term ends on September 17.

“He brings a wealth of knowledge and experience to the role of governor,” Treasurer Scott Morrison told parliament.

“The governor of the Reserve Bank tells me he is the most qualified person in his opinion to have ever been appointed to the role.”

Dr Lowe joined the RBA in 1980, heading up several departments and has served as deputy governor since 2012.

He has been appointed for a seven-year term.

Mr Morrison said the role of deputy governor would be filled in the second half of the year.

“Dr Lowe earned a PhD in Economics from the Massachusetts Institute of Technology after being awarded the University Medal for his undergraduate studies in economics at the University of New South Wales. Dr Lowe is well regarded in the central banking community, financial markets, and the Australian business community, and will reinforce existing confidence in the institution,” he said.

“I congratulate Dr Lowe on his appointment and also thank Mr Glenn Stevens for his valuable leadership of the RBA over the past ten years. International developments required Mr Stevens to steward the RBA through a challenging decade for the Australian economy, which included the global financial crisis, the passing of a once in a generation terms of trade boom, and the rise and fall of an unprecedented mining investment boom. The government thanks Mr Stevens and his staff for the role they played in helping the Australian economy navigate these significant challenges over the decade.”

Renowned economist Ian Harper, who recently chaired the federal government’s competition policy review, has been appointed as a part-time member of the RBA board for a five-year term, replacing John Edwards from July 31.

“He brings strong academic credentials as an economist to the Reserve Bank board,” Mr Morrison said.

“Professor Harper’s combined experience in public policy development and academia will enable him to make a strong contribution to Reserve Bank Board deliberations. Professor Harper recently chaired the Competition Policy Review (Harper Review), served as a member of the Financial System Inquiry (the Wallis Inquiry), and was the inaugural Chairman of the Australian Fair Pay Commission,” he said.

“Professor Harper also brings strong academic credentials to the Reserve Bank Board, having spent two decades as a Professor at the University of Melbourne – first as the NAB Professor of Monetary and Financial Economics (1988–1992), then as the Ian Potter Professor of International Finance (1992–2002), and the Sidney Myer Professor of Commerce & Business Administration (2002–2008) at Melbourne Business School.”

Shadow treasurer Chris Bowen thanked Mr Stevens for his service and welcomed Dr Lowe’s appointment, describing him as one of the finest Australian economists of his generation.

But he didn’t seem pleased with Professor Harper’s appointment, saying: “Dr Edwards would have been very worthy of reappointment to the board for a second term. I note the appointment of Ian Harper to the RBA board.”