New RBA Governor announced - Michele Bullock

[Cap]

Incoming RBA boss says she is coming into role at 'challenging time' for economy — as it happened

Incoming RBA governor Michele Bullock says she is aware of the "challenging" task she faces trying to tame inflation, while the ASX closed higher after recording its best performance all year.

www.abc.net.au

Treasurer Jim Chalmers announces Michele Bullock as the next RBA governor after a morning cabinet meeting.

It comes after the ABC confirmed current governor Philip Lowe would not have his term renewed once it expires in September.

 

[Golden_6]

I bet Lowe will hit us with a couple more interest rate rises over the next couple of months until he sets sail into the sunset.

 

[Ghost Patrol]

Cue the outrage from Dutton puppets.

 

[Gough]

Cue the outrage from Dutton puppets.

.
The government making it clear how seriously they're taking Dutton, one very good job they've done is marginalising him completely. You suspect he's going to hit John Howard in the 1980s level of public derision before he's removed from the job and unlike Howard there'll be no Lazarus with a triple bypass.

 

[Cap]

Cue the outrage from Dutton puppets.

I wanted to suggest I'm sure her credentials will be questioned by the obvious people, but I thought I'd go down the respect part first

 

[Carn The Berries]

One can only assume that, based on who his successor is, Lowe is effectively being shown the door purely because of his comments relating to the "expectation" that rates wouldn't rise until 2024. I suspect it will be a positive move for the government in terms of public reaction as they've got rid of "the guy who lied to us" but replacing him with his deputy seems to me like the government is vindicating how the RBA has been operating during his term.

In the grand scheme of things this isn't a huge announcement, but given how much traction it is getting (compared to when this has occurred in the past) it smells like doing something, without doing anything.

 

[QuietB]

One can only assume that, based on who his successor is, Lowe is effectively being shown the door purely because of his comments relating to the "expectation" that rates wouldn't rise until 2024. I suspect it will be a positive move for the government in terms of public reaction as they've got rid of "the guy who lied to us" but replacing him with his deputy seems to me like the government is vindicating how the RBA has been operating during his term.

In the grand scheme of things this isn't a huge announcement, but given how much traction it is getting (compared to when this has occurred in the past) it smells like doing something, without doing anything.

Lowe had to go. He is probably the worst communicator in any public position in Australia.

 

[Carn The Berries]

Lowe had to go. He is probably the worst communicator in any public position in Australia.

So what? Does any perceived lack of ability to communicate impact on his capacity to do his job? He's been in the role for 7 years so it was probably time for a change anyway, but this has turned into a complete circus and was "leaked" to the ABC this morning. Given how mundane this sort of decision would normally be I think it's fair to assume there is a level of politicising being done with regard to how much noise there is about it.

 

[QuietB]

So what? Does any perceived lack of ability to communicate impact on his capacity to do his job? He's been in the role for 7 years so it was probably time for a change anyway, but this has turned into a complete circus and was "leaked" to the ABC this morning. Given how mundane this sort of decision would normally be I think it's fair to assume there is a level of politicising being done with regard to how much noise there is about it.

It was the Leader of the Potatos that turned it all political.

And yes - communication matters. It is a massive part of this particular job.

 

[Xtreme]

I wanted to suggest I'm sure her credentials will be questioned by the obvious people, but I thought I'd go down the respect part first

Wouldn't it be better for a clean fresh start instead of going with the deputy governor who will probably deliver more of the same ?

 

[Cap]

Wouldn't it be better for a clean fresh start instead of going with the deputy governor who will probably deliver more of the same ?

Could be, I guess it depends on what kind of deputy she was.

A yes (wo)man or devils advocate

 

[Carn The Berries]

Wouldn't it be better for a clean fresh start instead of going with the deputy governor who will probably deliver more of the same ?

That was my first thought. What is the point of changing leader when all you do is appoint their deputy?

 

[Cap]

One can only assume that, based on who his successor is, Lowe is effectively being shown the door purely because of his comments relating to the "expectation" that rates wouldn't rise until 2024. I suspect it will be a positive move for the government in terms of public reaction as they've got rid of "the guy who lied to us" but replacing him with his deputy seems to me like the government is vindicating how the RBA has been operating during his term.

In the grand scheme of things this isn't a huge announcement, but given how much traction it is getting (compared to when this has occurred in the past) it smells like doing something, without doing anything.

At the end of the day he clearly caused a reputational hit to the RBA and you can see the contempt the Bank is now held.

Agreed its time for a change, but I'd argue that it's big news as a result of his public performance, which was lacking. His decisions on rate rises/cuts had been questioned since covid, but I guess that's a separate debate

 

[Cap]

That was my first thought. What is the point of changing leader when all you do is appoint their deputy?

Are you suggesting that no deputy can ever take over from their leader?

Kinda makes the deputy role a dead end.

 

[Xtreme]

Are you suggesting that no deputy can ever take over from their leader?

Kinda makes the deputy role a dead end.

It's fine for the deputy to take over the leader role when the leader is retiring or moving on after a period of success.
But the water is murky when the deputy is taking over the leader after a period of sustained failure. Hence why go for more of the same, change tact entirely.

 

[Cap]

It's fine for the deputy to take over the leader role when the leader is retiring or moving on after a period of success.
But the water is murky when the deputy is taking over the leader after a period of sustained failure. Hence why go for more of the same, change tact entirely.

Fair enough, I guess it really depends on the structure of your team.

If they are all the same and loyal to the outgoing leader then you could wonder if it makes a difference.

I think they deputies are independently picked though, so hopefully that reduces the chance of carbon copy leaders

 

[Carn The Berries]

It's fine for the deputy to take over the leader role when the leader is retiring or moving on after a period of success.
But the water is murky when the deputy is taking over the leader after a period of sustained failure. Hence why go for more of the same, change tact entirely.

I would argue that there hasn't been a period of sustained failure (IMHO) but the essence of what you're saying is correct. There was certainly a large cohort of people (media/politicians/Jo public) who believe(d) that the RBA was underperforming, which is a very strange environment to be promoting the second in charge.

The government have effectively said "we don't think there is anybody more capable for this role than someone who is already in close proximity to it" which seems.... odd....

 

[Carn The Berries]

Fair enough, I guess it really depends on the structure of your team.

If they are all the same and loyal to the outgoing leader then you could wonder if it makes a difference.

I think they deputies are independently picked though, so hopefully that reduces the chance of carbon copy leaders

It's a massive kick in the teeth for Lowe, basically he's been told "you're the problem, not your organisation" which I think is pretty unfair.

 

[Cap]

It's a massive kick in the teeth for Lowe, basically he's been told "you're the problem, not your organisation" which I think is pretty unfair.

Isn't accountability part of his role ?

I mean we can't ditch the RBA because we think the wrong decisions were made, we change the leadership.

 

[Ghost Patrol]

It's a massive kick in the teeth for Lowe, basically he's been told "you're the problem, not your organisation" which I think is pretty unfair.

He has earnt close to a million a year for 7 years. That’s more than most people earn in a lifetime.

So he can easily afford new teeth.

 

[Carn The Berries]

Isn't accountability part of his role ?

I mean we can't ditch the RBA because we think the wrong decisions were made, we change the leadership.

But.... they're not changing the leadership that made the "wrong" decisions?

 

[Not Important]

bang!!

 

[Cap]

But.... they're not changing the leadership that made the "wrong" decisions?

He's literally the governor of the RBA

 

[owen87]

It's a massive kick in the teeth for Lowe, basically he's been told "you're the problem, not your organisation" which I think is pretty unfair.

He's had 7 years in the job, and until the last two had not done much at all, then decided smashing interests rates up rapidly (after pretty unequivocally stating they'd not change for another 3-4 years) was the go.

There's no indications smashing those interest rates up has achieved anything at all except putting even more pressure on those who were already under pressure, whilst corporate profits are through the roof and older home owners without mortgages are living their best lives.

 

[Carn The Berries]

He's had 7 years in the job, and until the last two had not done much at all, then decided smashing interests rates up rapidly (after pretty unequivocally stating they'd not change for another 3-4 years) was the go.

There's no indications smashing those interest rates up has achieved anything at all except putting even more pressure on those who were already under pressure, whilst corporate profits are through the roof and older home owners without mortgages are living their best lives.

This is my entire point. If the belief is that the Board of the RBA were/are doing the wrong thing, why on earth do you replace him with his understudy?