New Reserve Bank boss revealed: Australia’s first female RBA governor is unveiled by Anthony Albanese as Philip Lowe loses his job after a year of rate hikes
- Philip Lowe’s term of office ends on September 17
- Deputy Michele Bullock will replace him
Philip Lowe has been replaced as Reserve Bank governor by a woman after raising interest rates 12 times in just over a year.
Michele Bullock, his deputy, is his replacement, making her Australia’s first-ever female RBA governor when she takes office on September 18.
Treasurer Jim Chalmers hailed the appointment of Australia’s first female central bank governor since the establishment of the RBA in 1960.
Ms Bullock is also the first Labor-appointed head of the Reserve Bank since 1989.
“She is an outstanding economist and leader with a deep understanding of the role and activities of the RBA, built up over her long and distinguished career at the central bank,” said Dr Chalmers.
Ms. Bullock will make history as the first woman to lead the RBA in its 63-year history.
Philip Lowe has been replaced as Governor of the Reserve Bank after raising interest rates 12 times in just over a year
“Her appointment strikes the optimal balance between providing exceptional experience and expertise and offering a new leadership perspective.”
Dr Chalmer’s decision not to extend Dr Lowe’s seven-year term beyond September 17 means Dr Lowe is now Australia’s shortest-serving RBA chief in nearly three decades.
Ms Bullock’s appointment was announced Friday morning, just 15 months after she replaced Guy Debelle as the RBA’s deputy governor.
Under Dr Lowe’s leadership, interest rates have risen 12 times since May 2022, even as he suggested they would remain at a record low of 0.1 per cent in 2021 “at the earliest” in 2024.
Michele Bullock, his deputy, is his replacement, making her Australia’s first-ever female RBA governor when she takes office on September 18 (she is pictured with former Liberal treasurer Josh Frydenberg in March 2022 after being appointed deputy governor)
Dr. Lowe was also the first RBA chief since 1991 to be in charge during a recession, due to the 2020 Covid lockdowns also leading to deflation.
But by the end of 2021, inflation surpassed the RBA’s two to three percent target and continued to rise in 2022 after the Russian invasion of Ukraine led to sanctions that drove up global crude prices.
Inflation reached a 32-year high of 7.8 percent late last year, but has moderated since then, with the Reserve Bank expecting inflation to remain high until mid-2025.
Economists fear that the Reserve Bank’s 12 rate hikes in just 13 months could trigger a recession, repeating the experience of 1989 when tighter monetary policy in 1991 triggered a downturn.