The Reserve Bank of Australia (RBA) has announced that Michele Bullock will become its first female governor since its establishment in 1960. Bullock will succeed Philip Lowe, whose
seven-year term as governor is coming to an end. Her appointment comes at a crucial time for the RBA as the country grapples with rising prices and the need for significant changes within the central bank.
The RBA has raised interest rates to their highest level in over a decade in an effort to address inflation. Bullock's appointment is a significant milestone in Australia's male-dominated financial services industry, which has one of the country's widest gender pay gaps.
Bullock, currently serving as the RBA's deputy governor, will assume her seven-year term as governor on September 18. She expressed her commitment to upholding the RBA's policy and operational objectives for the benefit of the Australian people. With nearly four decades of experience at the central bank, including senior management positions, Bullock is regarded as an RBA insider.
Australian Prime Minister Anthony Albanese praised Bullock as an outstanding economist with a distinguished career at the central bank. Finance Minister Kathy Gallagher called it a historic moment for Australia, as Bullock's appointment marks the first time a woman will lead the RBA.
Outgoing governor Philip Lowe expressed confidence in the RBA's future under Bullock's leadership, particularly as the central bank addresses the rising cost of living. The RBA faces pressure to tackle inflation, which is straining household budgets. The bank has raised interest rates 12 times since May 2022, aiming to curb inflation by reducing spending.
Bullock's appointment signifies a step toward greater gender diversity in Australia's financial sector, which continues to grapple with a significant gender pay gap. The RBA faces external scrutiny and calls for greater accountability as outlined in the first external review of the bank conducted in 40 years. Photo by Reserve Bank of Australia, Wikimedia commons.