Australia picks first female central bank head to shepherd through reform: Australia has appointed the first female head of its central bank, passing over the current governor to elevate his deputy to the high-profile job amid a public backlash over steeply rising interest rates. Australian Treasurer Jim Chalmers and Prime Minister Anthony Albanese announced that Michele Bullock would lead the Reserve Bank of Australia (RBA) for the next seven years, after Governor Philip Lowe declined to be reappointed for a second term. Bullock, 60, joined the RBA in 1985 with a masters from the London School of Economics and is widely respected by analysts.
Daily Current Affairs Quiz: July 2023
Why Philip Lowe not reappointed?
Lowe’s 43-year tenure at the bank will come to an end on September 17. Lowe’s decision comes as Chalmers prepares to attend a Group of 20 conference in India next week. The government has been under pressure to dump Lowe for encouraging people to borrow during the COVID-19 pandemic in 2021 by saying interest rates were unlikely to rise until 2024, only to start hiking two years early in mid-2022. Since then, the central bank has raised rates 12 times to a decade high of 4.1%, adding hundreds of dollars to monthly mortgage payments at a time when the cost of living is already straining household budgets.
About the Reserve Bank of Australia (RBA)
The RBA is currently undertaking the biggest reorganisation in decades after an independent review into its operations recommended sweeping changes to the way policy was formulated and communicated. The Reserve Bank of Australia is Australia’s central bank and banknote issuing authority. It has served in this capacity since 14 January 1960, when the Reserve Bank Act 1959 abolished the Commonwealth Bank’s central banking duties.
Important takeaways for all competitive exams:
- Reserve Bank of Australia Capital: Canberra;
- Reserve Bank of Australia Prime minister: Anthony Albanese;
- Reserve Bank of Australia Currency: Australian dollar ($) (AUD).