Australia names Michele Bullock as new RBA governor

© Reuters.

Investing.com -- The Reserve Bank of Australia said on Friday that the government had named Michele Bullock as its next governor, making her the bank’s first female leader after incumbent governor Philip Lowe’s term ends in September.

Australian media had reported a handful of frontrunners for the role, including Bullock, Treasury Secretary Steven Kennedy, and Australian Bureau of Statistics head David Gruen.

Bullock currently serves as deputy governor for the RBA, with her replacement to be named by the Treasurer in the coming months. She will take over as governor on September 18, 2023, and will serve for a period of seven years.

Bullock’s appointment comes as part of a broader overhaul of the RBA, which was announced earlier in 2023 after the conclusion of an independent review.

The new RBA governor will oversee several changes to the bank, including the scrapping of its monthly meetings in favor of eight a year, while the scope of the bank’s policies will also be narrowed to combating inflation and supporting employment.

“It is a challenging time to be coming into this role, but I will be supported by a strong executive team and boards. I am committed to ensuring that the Reserve Bank delivers on its policy and operational objectives for the benefit of the Australian people,” Bullock said in a statement posted on the RBA’s website.

Bullock’s appointment comes amid growing discontent with the RBA, following several perceived missteps over policy signaling during the COVID-19 pandemic and Australia’s worst inflationary surge in over 30 years.

Lowe spearheaded the RBA’s most aggressive pace of interest rate hikes since the 2008 financial crisis, with the bank having hiked rates 12 times over the past year to combat runaway inflation. But this came contrary to his signaling during the COVID-19 pandemic, when he had made assurances that interest rates would not rise until at least 2024.

“The Reserve Bank is in very good hands as it deals with the current inflation challenge and implementing the recommendations of the Review of the RBA,” Lowe said in a statement.

Bullock takes over as governor during a challenging time for the Australian economy, with growth and employment set to slow under high interest rates and sticky inflation. She was appointed as deputy governor in 2022, following the shock exit of then-deputy Guy Debelle to join Fortescue Metals' green unit.