RBA appoints new head of domestic markets

The Reserve Bank of Australia (RBA)’s deputy secretary David Jacobs has been appointed as the head of domestic markets, the central bank has announced on Tuesday (31 January).

Mr Jacobs’ new role fills a void left by outgoing head Jonathan Kearns, who resigned late last year.

In his new role, effective 6 February, Mr Jacobs has his work cut out in helping steer Australia’s economic ship as the RBA tries to keep it on an “even keel” through the ‘high inflation versus rising cash rate’ period.

As highlighted by the central bank, Mr Jacobs was most recently the Reserve Bank’s deputy secretary and before that he was deputy head of international department.

In terms of experience, Mr Jacobs worked on secondment at the Bank of England and held various roles in the Reserve Bank’s domestic markets department, economic analysis department and risk and compliance department, the RBA confirmed.

As regards formal education, Mr Jacobs has a bachelor of commerce (hons) from the UNSW and a masters of economics from the London School of Economics and Political Science (LSE). He is also a CFA charterholder.

In his new position, Mr Jacobs will oversee the Reserve Bank’s analysis of conditions in domestic financial markets and the bank’s open market operations.

Mr Jacobs will report directly to Christopher Kent, assistant governor, financial markets, the RBA explained.

Final words from the role

Departing head Mr Kearns late last year spoke openly about how climate change can have a significant impact on the structure of the economy and the pricing and return on assets.

“This means climate change has implications for the efficiency and stability of the financial system,” he explained.

As such, it is critical for central banks and financial regulators to carefully analyse and respond to climate-related risks, he added.

“In Australia, the CFR (Council of Financial Regulators) agencies work closely with each other, international peers and financial institutions to improve the quality and consistency of the information available for managing the financial risks associated with climate change,” he said.

“These are complex issues and our understanding of how best to respond will evolve over time.

“But it is critical that financial market participants and regulators act now to best manage the financial risks and facilitate the associated opportunities.”

[Related: Rate hikes could ‘lower’ repayments: RBA]