Philip Lowe will be replaced as the Reserve Bank governor, with cabinet meeting to decide his successor.
Lowe’s seven-year term expires on 17 September and he was widely expected to be replaced, with the timing of the change to be determined.
Guardian Australia confirmed on Friday that Lowe’s term would not be extended. Cabinet was expected to meet later in the day to endorse his successor.
Lowe said on Wednesday: “If I was asked to continue in the role, I would be honoured to do that and I would continue.”
He added: “If I am not asked to continue in the role, I will do my best to support my successor, and the treasurer has said he will make an announcement before the end of this month.”
The two previous RBA governors had three years tacked on to their terms, so Lowe’s exit is somewhat of a rejection by the government. Lowe has overseen 12 interest rate rises in the past 14 months to try to rein in inflation – not exactly boosting his popularity.
The prime minister, Anthony Albanese, would not comment on Thursday on the speculation he would be holding a special cabinet meeting on Friday.
“Well, we have meetings all the time,” he told Perth radio 6PR.
“We have meetings all the time and we will have meetings in the usual way. It’s not unusual for us to have meetings when I return and we will go through issues we have not made on the governance position that needs to be done before September.”
Asked about the next RBA governor, the prime minister said: “We will make that decision as a cabinet.”
Guardian Australian understands that only one name will be put to the cabinet meeting.
