Bipartisan support for new RBA boss Michele Bullock – with a warning

The Coalition has endorsed Michele Bullock as the new RBA governor after Peter Dutton warned against a senior public servant taking on the job.

Peter Dutton accused the Albanese government of having ‘character-assassinated’ outgoing RBA governor Philip Lowe. Picture: NCA NewsWire/Martin Ollman

The Coalition has endorsed Michele Bullock as the new RBA governor after Peter Dutton warned against a senior public servant taking on the job.

But the Opposition Leader accused the federal government of having “character-assassinated” outgoing RBA governor Philip Lowe, saying the central bank was being hampered by Anthony Albanese’s “bad policies”

Opposition Treasury spokesman Angus Taylor said Ms Bullock, the RBA’s deputy chair, was a “highly capable and qualified economist who has had a distinguished career at the Reserve Bank”.

“With inflation at its highest level in three decades, it is essential Australians can have confidence in this crucial economic institution and that we continue to have a credible and capable Reserve Bank,” he said.

“Families are feeling the impacts of higher prices and rising interest rates every day. Along with strong economic management, a strong Reserve Bank is essential to addressing the inflation that is driving higher prices.”

Other leading candidates for the role were Department of Treasury secretary Steven Kennedy and Department of Finance secretary Jenny Wilkinson.

Treasury Secretary Steven Kennedy. Picture: NCA NewsWire/Martin Ollman

Finance Secretary Jenny Wilkinson. Picture: Supplied

On Thursday, Mr Dutton said the Coalition would not support a leading public servant taking the role of RBA governor.

“The Reserve Bank governor has the independence because they need to make tough calls in our country’s interest, even if they’re unpopular calls,” he said. “We don’t want somebody there who’s been involved in the political process at a senior level, and I think that’s a very important point to make, and we’ve made that clear to the government as well.”

On Friday, the Prime Minister said Mr Dutton’s pushback against a public servant appointment had “less than zero” impact on the government’s decision.

“For the Leader of the Opposition to be critical of people at the calibre of Steven Kennedy who, I remind people, was appointed as the head of Treasury not by the Albanese government but by our predecessors,” Mr Albanese said.

“And Jenny Wilkinson who was the deputy secretary of the Treasury under the former government … is, I think, completely reprehensible.”

Treasurer Jim Chalmers said Mr Dutton was so negative he was “now bagging things that aren’t happening”.

“We won’t be taking lectures about the public service from the party of Robodebt, for example,” he said.

The Greens described Labor’s decision to dump Dr Lowe as “a victory for accountability”, but warned a total “change of approach” would be needed to deal with economic headwinds.

“The decision to sack Dr Lowe is vindication for the Greens who have been calling for him to go for some time,” Greens economic justice spokesman Nick McKim said.

“Dr Lowe made a series of mistakes and poor calls that resulted in renters and mortgage holders getting smashed for inflation they didn’t cause. The sacking of RBA governor Dr Phillip Lowe is a victory for accountability.”

However, Senator McKim said it was clear that interest rate rises would “continue to be used as a tool to increase unemployment and suppress wages”. “That monetary policy will not be used to address inequality or climate breakdown,” he said. “Replacing one RBA insider with another is business as usual, and a clear signal that renters and mortgage holders will keep getting smashed to solve a problem they didn’t cause.”

Greens economic justice spokesman Nick McKim.

Opposition finance spokeswoman Jane Hume. Picture: NCA NewsWire/Martin Ollman

Opposition finance spokeswoman Jane Hume said changing the RBA governor would not change the pain felt by Australian families at the bowser or in the supermarket checkout.

“It’s going to (take) more than just a change in personnel,” she told Sky News. “What we would like to see is the government do more. The RBA only has that one tool in the shed, it’s only got interest rates to deal with inflation. But the government with its fiscal policy has a few more levers it can pull.

“Right now the Reserve Bank has its foot on the brake, but the government seems to have its foot on the accelerator with $185bn in additional spending in the last 12 months alone.”

Senator Hume said the dumping of Dr Lowe showed the government was trying to avoid responsibility for the state of the economy.

“Instead, they pointed to the RBA and specifically to Philip Lowe and said the reason that interest rates are rising is his fault,” she told ABC.

“I think Michele Bullock is very well-placed to continue the good work of Philip Lowe in reining in inflation because inflation is the thief in the night. Jim Chalmers said inflation was public enemy No.1, but he said it back in October, but then in May in the more recent budget, the objective of lower inflation had magically disappeared from the fiscal strategy.”