Michele Bullock will be the ninth governor of the Reserve Bank, becoming the first woman to head Australia’s central bank.
She will start in that role on 18 September when she succeeds Philip Lowe.
But who is she, and what are her previous roles? Here’s what you need to know.
Who is Michele Bullock?
Bullock will become the first woman to head the central bank, the nation’s most important financial institution. She comes to the role after just 15 months as the deputy governor, a position that has often been the springboard for the top job.
An RBA “lifer”, Bullock joined the bank in 1985 and has held a number of positions.
Bullock gained her BA in economics at the University of New England in 1984 and then master’s at the London School of Economics in 1989.
As with Glenn Stevens, Lowe’s predecessor as governor, Bullock did not complete a doctorate in economics. Still, her LSE masters was under Charles Goodhart, one of the world’s leading monetary policy experts, according to John Hawkins, a former senior RBA official now at the University of Canberra. Goodhart “was most impressed by her”, Hawkins said.
What were her past RBA roles?
Bullock headed a string of increasingly important roles at the bank – including being made an assistant governor from 2010 – before becoming deputy RBA governor in April last year.
Jonathan Kearns, a senior RBA executive before he left the bank to join Challenger in January, said Bullock was “very well credentialed and she is across every aspect of the RBA”.
Kearns was head of the RBA’s financial stability department for five years, reporting directly to Bullock when she was assistant governor for financial systems.
He says Bullock was “a good listener who takes on board the views of all those around her” and capable of quickly getting to the crux of matters that were not familiar to her, skills that came in handy when the Covid pandemic threw up unexpected challenges.
What’s been the reaction to her appointment?
Lowe, who had sought an extension to his term, said the treasurer, Jim Chalmers, had “made a first-rate appointment”.
“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,” Lowe said in a statement. “I wish Michele all the best.”
Warwick McKibbin, a monetary policy professor at the Australian National University and former RBA board member, described Bullock’s elevation as “a great appointment”.
“She’s a very well-trained economist” who will be “tough and gentle” in how she serves in her role, he said.
With Steven Kennedy heading Treasury and Jenny Wilkinson leading the finance department, Australia had the “top three appointments in the top three positions”, McKibbin said.
Warren Hogan, the chief economist at Judo Bank, described Bullock as “experienced and battle-hardened [who] knows exactly what it takes to make good monetary policy”.
What will be key, though, is “having the courage to take difficult decisions that can have negative short-term consequences for a much bigger long-term reward”, Hogan said, adding that Bullock will also be tested on how effectively she engages “beyond the big end of town”.
What will be Bullock’s priorities?
By the time Bullock takes over, the RBA board will have met twice more on interest rates. As a board member, she will have a voice in shaping those decisions.
The central bank paused at this month’s meeting for only the second time since it started hoisting the official interest rate in May 2022. The ANZ on Friday – formerly among the more hawkish of the commercial banks – predicted the RBA will pause again next month.
Either way, short of a surprise uptick in inflation, most pundits predict the central bank is near the end of its rate-rising cycle. Indeed, it is possible Bullock’s first change in the cash rate after her 18 September appointment will be a rate cut – although such a move is unlikely until well into 2024 unless there is some global economic calamity.
Bullock’s attention will also be absorbed in part by the need to implement a range of the recommendations resulting from the once-in-a-generation review of the RBA.
Lowe already outlined the key changes that are within the RBA’s remit earlier this week in what turned out to be his final speech before learning his services were no longer required.
Kearns said the RBA governor’s role was already “a mammoth task” – ranging from overseeing the currency to managing the payments between banks – before adding the review’s revamp.
“It’s really important that those recommendations are implemented not just in the letter but in their spirit,” he said.
