Australia Treasurer Aims to Appoint New RBA Deputy Governor by December 5, According to Reuters

SYDNEY (Reuters) – Australia’s Treasurer Jim Chalmers announced on Sunday his intention to appoint a new deputy governor for the Reserve Bank of Australia (RBA) within the next month, following Michele Bullock’s transition to the role of RBA governor.

Chalmers expressed his hope to make the announcement before the Reserve Bank’s upcoming meeting on December 5. Bullock, who stepped into the governor position in July, faces the significant task of guiding the bank through a considerable internal transformation prompted by a recent review. This review recommended the establishment of a separate specialized board to manage monetary policy, a reduction in the number of meetings, and enhanced public communication.

In regard to the search for a new deputy governor, Chalmers indicated that candidates from both domestic and international backgrounds are being considered and interviewed, with Bullock playing a key role in the selection process.

On the implementation of the Reserve Bank’s review recommendations, Chalmers stated that new legislation would be proposed at the end of November. This legislation is expected to include a provision for the RBA governor to chair a newly formed governance board for an initial period of at least five years, or until it can be reviewed to ensure it meets its intended purpose.

The April review suggested establishing such a board to provide guidance and oversight for the RBA’s management, aligning with best practices in corporate governance.

Bullock, who became the first female governor of Australia’s central bank, succeeded Philip Lowe in September. Chalmers’ remarks come ahead of a scheduled RBA meeting on Tuesday, where it is anticipated that the bank will increase its key policy rate by 25 basis points to 4.35%, following a period of four consecutive meetings where borrowing costs were maintained.