Key Points
- Michele Bullock is set to replace Philip Lowe as Governor of the Reserve Bank of Australia.
- She will make history as the first woman to hold the role.
- Bullock started at the RBA in 1985 and held a number of senior management positions.
Michele Bullock describes herself as a country girl who once found the idea of going to the city daunting.
But she will make history when she takes up one of the biggest jobs in the 'city' as Reserve Bank of Australia (RBA) governor on 18 September.
Bullock started at the RBA in 1985 and has held a number of senior management positions.
She will be the first woman to hold the post after previously breaking new ground when appointed deputy governor last year.
In a revealing interview with her alma mater, she spoke of how her nearly 40-year career at the central bank could have taken a very different path.
Accepted into medicine at the University of New South Wales, the then-17-year-old didn't know if she was cut out for it.
Her father, an administrator and data processor at the University of New England, suggested she speak with people about the economics course she had enjoyed in school.
"As a country girl, I found the idea of going to the big city quite daunting, so staying at home was a good option," Bullock said.
"I found economics interesting; it was useful in day-to-day life and topical."
She said the public-service element of her job had led her to spend her entire career at the Reserve Bank.
"It's offered a great breadth of things for me to contribute to and, underlying it all, is that it's in the public interest, which works for me," Bullock said.
She said she was also keenly aware of serving as a role model for other women at the RBA.
"I want to be inclusive, welcoming and make a level playing field upon which everyone can contribute," Bullock said.
"And I think I bring that from my country upbringing."
Will Michele Bullock follow Lowe's lead on interest rates?
Bullock will have the challenging job of as well as the unfinished task of .
Inflation has passed its peak but was still growing at 5.6 per cent annually in May, well above the 2-3 per cent target range.
Most economists agreed borrowers could expect to see a continuation of monetary policy decision-making, with Bullock involved in all the meetings in the present tightening cycle.
UNSW Business School associate professor Mark Humphrey-Jenner said none of Bullock's communications to date suggested her views deviated much from those of her predecessor.
He told the Australian Associated Press that the tightening cycle will likely have ended by the time she takes the reins, and her first test as a leader will be determining how long to keep interest rates high before cutting them.
Former treasury official and economist Steven Hamilton said Bullock was the best option, but there was a valid argument to bring in an outsider to "shake things up" in light of the review findings.
He told ABC TV the decision to go with an insider, who was still able to implement change but unlikely to "scare the horses", was the right one given the uncertain economic environment.
Hamilton said the review did call for some "pretty dramatic" cultural and governance changes, and appointing someone who had been at the institution for 40 years raised a "legitimate question".
But he said Lowe should not be criticised for lifting interest rates to tackle high inflation as the RBA has been doing since May 2022.
National Australia Bank economist Ivan Colhoun believes there are likely to be few implications for the hiking cycle but said she was likely to be seen as "more practical and less theoretical than her predecessor".
"As a very level-headed individual, she seems well suited to implement many of the recommendations for cultural change at the RBA," he said.
The economist also said Bullock's involvement in the branch responsible for financial system stability suggested she may be "more attuned" to the risks facing households from the sharp rise in interest rates.
How long did Philip Lowe serve as RBA governor?
Bullock will serve as the ninth governor of the RBA for a seven-year term, beginning on 18 September.
Of the eight previous governors, five have served only one term.
Philip Lowe will not be reappointed as governor of the Reserve Bank of Australia. Source: AAP / Darren England
His attracted criticism after the bank lifted rates much earlier in response to .
The governor later apologised for not adequately communicating the caveats attached to his guidance.
On Friday, Prime Minister Anthony Albanese and Treasurer Jim Chalmers announced Michele Bullock would take on the role of RBA Governor in September. Source: Supplied / Prime Minister's Office
"The Treasurer has made a first-rate appointment. I congratulate Michele on being appointed Governor," he said.
"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."
