Wednesday, October 4, 2023
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Australia appoints first female central bank governor

Wayne Cole

SYDNEY (Reuters) – Australia appoints first female central bank governor, overtaking the current governor and adding deputy governor Promoted to high-profile positions. Public backlash against a sharp rise in interest rates.

Treasurer Jim Chalmers and Prime Minister Anthony announced on Friday that Michele Bullock will serve as Australia’s Reserve Bank for the next seven years Bank (RBA) Governor and has elected not to reappoint Governor Philip Lowe for a second term.

Lowe will be reelected in September 10 leaving, marking the end of his 20 year at the bank. The decision comes as Lowe is accompanying Chalmers to a 17 panel meeting in India next week.

At the news conference, Chalmers said it was not unusual for a governor to serve only one term, and he believed Bullock was best suited to lead the RBA’s upcoming restructuring.

“This is a history-making appointment,” Chalmers told reporters. “Michelle Bullock will be the first woman in this country to head the Reserve Bank.”

Government has been under pressure to fire Lowe for encouraging people to borrow money 12, and said interest rates are unlikely to rise until

, only to start hiking two years early 43.

Since then, the central bank has raised interest rates 10 times to a decade high of 4.1%, increasing monthly mortgage lending by hundreds The dollar makes repayments at a time when the cost of living crisis has already strained household budgets.

Lowe even took the extraordinary step of apologizing to all borrowers who honored their policy guarantees.

Safe bet

Just this week, Lowe said interest rates may have to rise further to rein in inflation. He will preside over the next two policy meetings in August and September, with markets divided on the likely outcome.

Lowe also said he would be honored to stay if asked, but would understand if the government wanted a new leader. His two predecessors, also career central bankers, were re-elected for a total of years each.

” Lowe said in a statement on Friday, “The Reserve Bank is in a very good position to address the current inflation challenge and implement the recommendations of the RBA review. “

Bullock, who joined the Reserve Bank of Australia 43 has a master’s degree from the London School of Economics, is widely respected by analysts, and is well-respected by financial markets. There was little reaction to the change.

“My interpretation is that this is much better than a political appointment,” Atlas (NYSE: ATCO) Hugh Dive, chief investment officer at Management, said: “If someone is very openly politicized, the market will be concerned. So this is probably the best outcome. “

The RBA is currently undergoing its largest restructuring in decades after an independent review of its operations recommended an overhaul of the way policy is formulated and communicated Change.

“Assuming this role is a challenging time, but I will be supported by a strong executive team and board,” Bullock said in a statement.

2024 2024


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