The Australian government today announced that Michele Bullock, Deputy Governor at the Reserve Bank of Australia, will replace Governor Philip Lowe when his seven-year term expires in September. Although Lowe could have been re-appointed when his term expires, it is not unusual for a Governor to serve only one term. The RBA has faced heavy criticism for its performance since it began tightening policy aggressively last year after Lowe had previously advised that he expected rates would remain at historically low levels until 2024.

Bullock has had a long career at the RBA and was appointed Deputy Governor just over a year ago. Her background suggests she will provide continuity to the RBA's policy deliberations. After raising policy rates by a cumulative 400 basis points since May 2022, the RBA left rates on hold at its most recent meeting earlier in the month. Officials noted that this pause would give them time to assess how economic conditions have been impacted by previous policy tightening but advised that further rate hikes remain possible in coming months.

Bullock will be responsible for overseeing changes to the RBA's procedures and operations that were recommended in a external review earlier in the year. Some of these changes relating to the timing and frequency of policy meetings have already been accepted by the RBA and will be introduced in 2024, while others will be finalised once the government secures changes to the relevant legislation.

Global-FYI tracks critical developments fon the global markets including political news, special central bank announcements, and substantial moves in the financial markets.

Major political events and special announcements by the global central banks can shift both the short-term and long-term outlooks for the global economy and financial markets.