RBA names new governor

Mr Morrison told parliament yesterday that deputy governor Philip Lowe will replace Glenn Stevens for a seven-year term when the RBA chief steps down on 18 September 2016.

“Dr Lowe brings a wealth of knowledge and experience to the role of governor, having served as the RBA deputy governor since early 2012, heading up many of the RBA’s analytical departments and publishing on a wide range of issues relevant to the operation of monetary policy over his three-decade career with the RBA,” Mr Morrison said.

“Dr Lowe also served as head of the financial institutions and infrastructure division at the Bank for International Settlements (2000-2002), where he authored important research on the financial stability role of central banks in low inflation environments,” he said.

The treasurer thanked Mr Stevens for his valuable leadership at the RBA over the past ten years.

Mr Morrison said international developments required Mr Stevens to steward the RBA through a challenging decade for the Australian economy – which included the global financial crisis, the passing of a once in a generation terms of trade boom, and the rise and fall of an unprecedented mining investment boom.

“The government thanks Mr Stevens and his staff for the role they played in helping the Australian economy navigate these significant challenges over the decade,” he said.

Mr Morrison also announced the appointment of Professor Ian Harper as a part-time member of the Reserve Bank board for a five-year term from 31 July 2016.

He said Professor Harper’s combined experience in public policy development and academia will enable him to make a strong contribution to the RBA board.

“Professor Harper recently chaired the Competition Policy Review (Harper Review), served as a member of the Financial System Inquiry (the Wallis Inquiry) and was the inaugural chairman of the Australian Fair Pay Commission.”

Professor Harper’s term on the Reserve Bank board coincides with the conclusion of Dr John Edward’s term on 30 July 2016.

“Dr Edwards has made an important contribution to Reserve Bank board deliberations through a challenging period for the Australian economy and I thank him for his service,” Mr Morrison said, adding, “I wish him every success for the future.”

The appointment of Dr Lowe will create a deputy governor vacancy at the RBA, and Mr Morrison said considerations for filling the spot will take place in the second half of the year.

[Related: RBA rate cut 'may not be enough']