Well, well, big changes at the RBA. From the SMH:
Treasurer Wayne Swan has made two new appointments to the Reserve Bank of Australia board.
Philip Lowe has been appointed as the bank’s deputy governor, replacing Rick Battellino, who is retiring.
Australian Industry Group chief executive Heather Ridout has been appointed as a board member, Mr Swan said today.
“Dr Lowe’s promotion comes after a very distinguished career at the RBA beginning in 1980,” Mr Swan said. “Since April 2009, Dr Lowe has served as assistant governor (Economic) and has been the chief economic adviser to the governor and the Reserve Bank board.”
I’m kind of happy about these two appointments. Philip Lowe is, in my view, the smartest guy in the room at the RBA and is an excellent appointment as both Deputy and for that matter, the next governor. With Boom Boom’s retirement we are trading a credit champion for someone more circumspect.
Also, appointing a manufacturing representative is terrific to my mind. Whether it should be Ridout we will know in time. She has been compromised as the head of the AIG in my view, following the failure of the resources rent tax, but there is no doubting her commitment to manufacturing. I hope she resigns her role as head of AIG because it’s surely pushing the RBA board remit a bit far, even if the other business members have obvious business interests, they aren’t lobbyists. Conversely, being on the RBA board potentially further compromises her freedom with regard to taking an aggressive pro-industry stand point.
