Australia central bank appoints first female head Michele Bullock for next seven years

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Also read: Japan Accuses Australia of Betrayal in Fight Over Natural-Gas Exports Lowe will leave office on September 17, marking the end of his 43-year career at the central bank. Lowe is due to accompany Chalmers to a Group of 20 meeting in India next week. "This is a history-making appointment, Michele Bullock will become the first woman to ever lead the Reserve Bank in this country," said Chalmers reported Reuters.

The government faced pressure to replace Lowe due to criticism over his encouragement of borrowing in 2021, assuring the public that interest rates would not rise until 2024. However, rates started increasing in mid-2022, and the central bank has since raised them 12 times to reach a decade-high of 4.1 percent. This has led to increased monthly mortgage repayments, exacerbating the cost of living crisis faced by households.

Also read: Central banks fall out of sync: What it means, in 5 charts "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 stated. Bullock joined the RBA in 1985 with a masters from the London School of Economics and is highly respected by analysts. Financial markets reacted calmly to the change, and experts believe Bullock's appointment is preferable to a political appointee.

"It is a challenging time to be coming into this role, but I will be supported by a strong executive team and boards," Bullock stated. The RBA is currently undergoing a major reorganization following an independent review of its operations. The review recommended significant changes to the formulation and communication of policy.  (With inputs from Reuters)