For any economy, the state of the economy can have a profound impact on the financial health of its citizens. This is especially pertinent in light of the appointment of Michele Bullock’s as the Reserve Bank of Australia’s (RBA) new governor. Veteran finance pundit Alan Kohler has made a bold claim of what the next two years may bring for the economy after the announcement of this nomination.
The appointment of Ms Bullock has been seen as an optimistic solution to the current economic climate, in which costs of living and inflation remain a challenge. Ms Bullock spent the last three years as the deputy governor of the RBA, serving on the bank’s payment systems and executive women boards.
Her experience has shown her adept at managing a range of banking issues, and her new role as RBA governor will no doubt be essential in addressing Australia’s current financial dilemmas.
Kohler asserted Ms. Bullock, having served in the RBA for 37 years, has reached the pinnacle of her career at an opportune time in Australia’s history but her prerogatives lie more towards restructuring the activity in the RBA rather than increasing rates.
“She is joining the job at a point similar to when Lowe was appointed, with him not altering interest rates for almost two and a half years after his appointment in September 2016. He held 29 meetings and, still, left the rate at 1.5%,” Kohler told ABC Melbourne on Friday.
Jim Chalmers, the Treasurer, admitted the decision to remove Dr Lowe was not straightforward, stating that Lowe was one of the nominees being considered for the job.
Despite this, Kohler declared that it was highly unlikely that Lowe would be reappointed due to the recent criticisms of the Reserve Bank of Australia’s decisions.
