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Reaction to Ms Bullock’s appointment has been widely positive as businesses look for stable monetary policy to combat the inflation challenge.
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Change of RBA governor a cause for optimism
18 July 2023
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Businesses and associations have been widely optimistic about the appointment of Michele Bullock as the next RBA governor with many saying the decision – alongside the review of the organisation – has set the board up for a stable and transparent monetary policy into the future.
Treasurer Jim Chalmers announced Ms Bullock will be the first woman to lead the RBA in its 63-year history with experience from working at the RBA since 1985 and her fresh leadership perspective to provide renewed confidence from businesses.
Ai Group chief executive Innes Willox declared the government’s decision was an “excellent choice” and believes it will cause the RBA to improve.
“Ms Bullock is an excellent choice to lead this critical economic institution,” said Mr Willox.
“The RBA’s stewardship of Australia’s monetary policy under the dual mandate to keep inflation low and employment high, is a bedrock that lifts confidence by stabilising domestic inflation thereby supporting investment, job creation and non-inflationary real wages growth.”
“The current challenge of bringing inflation down while retaining the very strong gains that have been made in the labour market over recent years remains formidable.”
“Ms Bullock has a strong track record of consulting closely across the economy including with business. She spoke last month to Ai Group members and business leaders in Newcastle and we look forward to continuing to work with her.”
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The Australian Chamber of Commerce and Industry (ACCI) welcomed Ms Bullock’s appointment but said she faces a significant challenge.
“Michele Bullock brings the leadership, experience and integrity that Australia needs as it faces new economic challenges,” said ACCI chief executive Andrew McKellar.
“A strong and independent Reserve Bank is essential to address the pressures that the economy is experiencing, particularly rising prices and interest rates. These pressure points are balanced with the need to maintain strong employment.”
“Amid this difficult economic environment, an especially important task for Michele Bullock will be to implement the reforms of the Reserve Bank review.”
The Australian Council of Trade Unions (ACTU) said Ms Bullock’s leadership at the RBA will need to view the Australian economy and its challenges with fresh eyes and a change to previous thinking.
“We welcome the changing of the guard at the Reserve Bank. It is time to stop fighting mythical wage price spirals and to recognise we have a very different wage system to the 1970s,” said ACTU secretary Sally McManus.
“Working people have been punished for an inflation problem they did not cause and this has put severe pressure on working families. We hope the new governor will consult directly with the people who understand these issues.”
“In the last 14 months we’ve seen 12 interest rate rises, that can’t go on. Workers have been feeling the brunt of inflation rate rises and we call on Michele Bullock to take a different approach than her predecessor.”
Ms Bullock acknowledged the testing circumstances she would face once she steps into the role in September but said she is confident the RBA can achieve its goals and help the Australian people.
“I am deeply honoured to have been appointed to this important position,” said Ms Bullock.
“It is a challenging time to be coming into this role, but I will be supported by a strong executive team and boards.”
“I am deeply committed to ensuring that the Reserve Bank delivers on its policy and operational objectives for the benefit of the Australian people.”
The RBA confirmed Philip Lowe will finish his term on 17 September 2023, with Ms Bullock commencing in the role from 18 September on a seven-year term.
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