MICHELE Bullock will become the Reserve Bank of Australia’s first woman chief in its 63-year history starting in September, the government said today, effectively sacking the incumbent after a series of unpopular rate hikes.

Outgoing chief Philip Lowe’s 43-year career at the bank has been dogged by criticism from the government and media over the rate increases, which were aimed at dampening inflation but have made life more difficult for homeowners thanks to rising mortgage costs.

The bank’s decision to freeze the benchmark rate last month came after May’s 25-basis-point hike sent it to its highest point in 11 years.

Australia’s treasurer Jim Chalmers said that Lowe “goes with our respect, he goes with our gratitude and he goes with dignity”.

“Dr Lowe has overseen the bank through a period of exceptional economic disruption and uncertainty, including the impacts of the Covid-19 pandemic and Russia’s invasion of Ukraine.”

Chalmers said the move not to renew Lowe’s tenure was “not about any one decision taken by the Reserve Bank board or any one outcome”.

He also said it would not affect the country’s continuing struggle with the rising cost of living.

“Obviously the face of the Reserve Bank has changed but, to state the obvious, the economic outlook has not,” he said. – AFP, July 14, 2023.