Treasurer Jim Chalmers confirmed on Thursday that he will name the next governor of the RBA in July ahead of the expiration of Philip Lowe’s current term in September.
“It’s always been the government’s intention to consider this appointment around the middle of the year,” Mr Chalmers said on ABC Radio on Thursday.
“This is a big job and it’s a big call, and we’re working through it in the usual, methodical and considered way.”
The Treasurer said he is currently in the process of consulting with his cabinet colleagues with a view to finalise the decision in “the coming weeks”.
“I am hoping to make an announcement in July, but certainly by the time the Parliament returns,” he said.
Reiterating the size of the job, Mr Chalmers said the government had always been “shooting for the middle of the year”.
The government in April said it has accepted in-principle all 51 recommendations outlined in the An RBA fit for the future report, informed by a review of the central bank.
Launched in July 2022, the review was designed to ensure Australia’s monetary policy arrangements and the operations of the RBA “continue to support strong macroeconomic outcomes for Australia in a complex and continuously evolving landscape”.
Key changes recommended by the review include a major overhaul of the RBA’s decision-making processes, with a call to establish new, function-based, RBA boards.
Specifically, a monetary policy board — responsible for monetary policy decisions and oversight of the RBA’s contribution to financial system stability (except payments system policy) — and a separate governance board which would be tasked with providing “guidance and oversight for RBA management in the running of the organisation”.
Ahead of the response to the review, Mr Chalmers said the government’s aim is to “make a meaningful change that lasts” and to ensure “the respect and reputation” of the RBA.
On Dr Lowe’s future, he said at the time that a decision would be made “closer to the middle of the year”.
“In the normal course of events, an appointment that comes up in September would be considered closer to the middle of the year. I’ll obviously consult with my cabinet colleagues, with the prime minister, with the economic team and more broadly as well,” Dr Chalmers said.
In his own address to the media at the time, Dr Lowe said he would accept a term extension if offered by the Treasurer.
“…If I was asked to stay, then I would. It’s an important, responsible, and honourable job,” he said.
“If the government would like me to stay, then I’m happy to stay. But if they want somebody else, [I’d] perfectly understand that and have other things to do with my life.”
