- A Historic Appointment: Michele Bullock becomes the first woman to lead the Reserve Bank of Australia since its establishment in 1960
- Challenging Times Ahead: Bullock takes the helm of the central bank amidst rising prices and a significant restructuring
- Paving the Way for Gender Equality: Appointment highlights gender disparity in the Australian financial services industry and marks a milestone in leadership
The central bank of Australia will be administered by a woman for the first time since its establishment in 1960.
After seven years as RBA governor, Philip Lowe will be succeeded by Michele Bullock.
Her appointment comes amid rising prices and RBA restructuring.
To combat inflation, it has raised interest rates to their highest level in over a decade.
The Australian financial services business is dominated by men and has one of the highest gender pay gaps.
The current deputy governor of the RBA, Ms. Bullock, will begin her seven-year term as governor on September 18.
On Friday, Ms. Bullock stated, “I will be supported by a strong executive team and boards during this challenging time.”
“I am committed to ensuring that the Reserve Bank delivers on its policy and operational objectives for the benefit of the Australian people,” she added.
Ms. Bullock is described as an RBA insider, having entered the central bank nearly four decades ago as an analyst.
Before she was appointed the RBA’s deputy governor in April 2022, she held several senior management positions, including that of assistant governor and director of the payments policy department.
In a tweet, Australian Prime Minister Anthony Albanese described Ms. Bullock as “an exceptional economist with a long and distinguished career at the central bank.”
“We believe she has the experience, expertise, and a fresh perspective to lead the RBA as Australia – and the world – faces ongoing economic challenges,” Albanese said in another tweet.
Finance Minister Kathy Gallagher stated, “With Michele’s appointment, the RBA will be led by a woman for the first time in Australia’s history.”
The RBA’s retiring governor, Mr. Lowe, said the central bank is well-positioned to confront growing living costs.
“The Treasurer has made an excellent selection. “I wish Michele the best of luck,” he said.
The Reserve Bank of Australia is under pressure to combat inflation, which is straining household budgets.
Since May of last year, the central bank has raised interest rates twelve times, to conflicting reactions from economists. The RBA’s key interest rate is presently at its highest level in eleven years, 4.1%.
In principle, increasing interest rates makes borrowing money more expensive and encourages individuals to spend less, thereby reducing inflation.
Mr. Lowe was criticized for suggesting that Australians should labor more and spend less in response to rising interest rates.
Mr. Lowe stated at a financial industry conference last month, “If people can reduce their spending or, in some cases, find additional hours of work, they will regain a positive cash flow position.”
He also defended the central bank’s eleventh interest rate hike, saying “homeowners are doing well.”
The Australian government released its first external assessment of the RBA in forty years earlier this year.
The assessment produced 51 recommendations, including calls for a more transparent monetary policy framework and greater central bank accountability.
According to government data, Australia’s financial services industry continues to have one of the nation’s largest gender pay disparities.
Last year, the Workplace Gender Equality Agency discovered a 28.6% pay gap between males and females in the sector.
This exceeded the national gender wage differential of 22.8%.
