Michele Bullock to lead RBA with ‘reform agenda’: Gallagher

The first female governor of the central bank has a big role ahead of her - with one job at the top of her list.

The incoming Reserve Bank governor is expected to bring “reform agenda” to the institution as it seeks to ramp up transparency, the government say.

Michele Bullock will become the ninth governor of the central bank from September, and will be the first female appointment after the government decided not to extend Philip Lowe’s tenure.

Much has been said about the direction the bank has gone under the outgoing governor, with the bank raising rates from the historic low of 0.1 per cent to 4.1 per cent over 13 months.

Finance Minister Katy Gallagher said Ms Bullock’s new position would also come with considerable scrutiny as mortgage holders buckle under high interest rates.

Michele Bullock will be the ninth Reserve Bank governor from September. Picture: NCA NewsWire / Martin Ollman

“She does have a reform agenda … she’s got the leadership skills necessary to guide that path over the next few years, so it’s an incredibly important appointment,” Senator Gallagher told ABC Radio.

“Any job at this level at the level of governor of the Reserve Bank is going to bring incredible scrutiny as it should. These are important jobs making important decisions that have effect on Australians’ lives.”

Ms Bullock’s appointment coincides with the bank’s decision to accept key recommendations handed down in a government-ordered review earlier this year.

From next year, the board will only meet eight times a year to decide on interest rates, rather than the current 11.

But those meetings will be longer, and after each decision Ms Bullock will have to give a press conference to explain why the board had made such a ruling.

The government made the announcement on Friday. Picture: NCA NewsWire / Martin Ollman

Senator Gallagher said it had been made clear from the review that more transparency was needed out of the Reserve Bank.

“I have no doubt that incoming governor Bullock understands that there will be incredible scrutiny on the job that she does, and that the bank does as a whole,” she said.

“She will … bring all of her immense experience and qualities to that job and be a tremendous governor of the Reserve Bank.”

Finance Minister Katy Gallagher said Ms Bullock would lead with a ‘reform agenda’. Picture: NCA NewsWire / Martin Ollman

Shadow treasurer Angus Taylor welcomed Ms Bullock’s appointment, stressing the importance of having a governor independent of government.

Last week, Opposition leader Peter Dutton said the Coalition would not support the appointment of anyone who had been “tainted” by working with governments of either side.

Prime Minister Anthony Albanese and Treasurer Jim Chalmers said Mr Dutton’s statement had no impact on their decision.

They said they had selected Ms Bullock because she was the best fit for the job.

Mr Taylor said the data was “very, very clear” from around the world that an independent Reserve Bank “delivers lower inflation”.

“It’s not appropriate to have a secretary of an economic department who has been formulating government policy to become the governor,” he told ABC Radio.