By Shane Wright
Treasurer Jim Chalmers has broken from decades of precedent, appointing an outsider as Michele Bullock’s deputy at the Reserve Bank.
Senior Bank of England economist Andrew Hauser will become the deputy governor, probably from early next year, in a move that sets him on track to be possible governor when Bullock’s term ends.
As the first deputy to come from outside the RBA, Andrew Hauser’s appointment marks another major shift for the institution.
The position has been vacant since Bullock, who was deputy, took over as governor in September.
As the first deputy to come from outside the RBA, Hauser’s appointment marks another major shift for the institution. It is part of a suite of changes, including the creation of a standalone monetary policy setting committee, flowing from this year’s independent review of the RBA.
Chalmers said the new deputy, who sits on the bank board, would bring fresh thinking.
“Mr Hauser brings international expertise in macroeconomics, markets and central banking operations from his distinguished career spanning over 30 years at the Bank of England,” he said.
“His appointment strikes the right balance between providing deep central banking experience and offering a fresh, global perspective to the work of the RBA.”
Chalmers will introduce legislation this week putting in place changes to the RBA including the creation of the monetary policy committee and the axing of long-standing laws that enabled the treasurer of the day to overrule the bank’s interest rate decisions.
Hauser, whose appointment was signed off by cabinet on Monday morning, is currently the Bank of England’s executive director of markets, making him responsible for the way the bank supports its monetary and financial stability objectives.
He has previously been the United Kingdom’s alternative executive director at the International Monetary Fund, the head of the Bank of England’s international economic analysis and the head of the bank’s inflation report.
Hauser beat three people on a shortlist for the deputy job that included an overseas-based Australian economist and an internal RBA candidate.
Last month, he visited Australia to speak directly to both Chalmers and Bullock.
Hauser said he was looking forward to the new job.
“I am humbled and deeply honoured to be asked to serve as the RBA’s next deputy governor,” he said in a statement.
“I look forward to working closely with Michele Bullock, her senior team and the talented staff of the RBA to serve the Australian people and to make a reality of the recommendations in the RBA review.”
Bullock said she was looking forward to Hauser taking up the position.
“I warmly congratulate Andrew on his appointment as the deputy governor of the Reserve Bank and look forward to working with him. He has great experience and will bring a welcome external perspective to the bank and the Reserve Bank board,” she said.
Hauser was supported for the job by current Bank of England governor Andrew Bailey.
“Andrew is an outstanding central banker, respected around the world. While he will be greatly missed at the Bank of England, I am delighted that he is taking up such an important role at the Reserve Bank,” Bailey said in a statement.
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