RBA governor-elect Michelle Bullock's luck may be in

But the timing of Michele Bullock's appointment may turn out to be a stroke of good fortune for the first woman to head the Reserve Bank of Australia.

In the view of many economists and market watchers, by the time Ms Bullock starts her term on September 18 the central bank will be well and truly done with rate hikes.

All the heavy lifting of raising interest rates, and the opprobrium that accompanies that, will have been carried by her predecessor Philip Lowe.

As parting gifts go, Dr Lowe's is significant.

He is likely to leave Ms Bullock with an economy in which the decline in inflation is well-entrenched, the unemployment rate will be little more than 4 per cent and interest rates will be on hold - likely for an extended period.

For sure, the new governor's job will not be easy. The economy is expected to slow sharply later this year and next year, which will force job losses and deepen the financial strain on families.

The pressure to cut rates will be intense, but many economists think any relief from high rates won't start kicking in until well into 2024.

At the same time, Ms Bullock will be overseeing the implementation of significant changes to the way the Reserve Bank operates.

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The includes cutting the number of RBA board meetings from 11 to eight a year, establishing an expert group of external economists to advise on monetary policy and initiating greater transparency in the way the central bank operates and sets interest rates.

In announcing Ms Bullock's appointment, Treasurer Jim Chalmers lauded her leadership abilities.

But it may turn out that her most important attribute will be her ability to communicate.

As her predecessor Dr Lowe found to his great cost, this can be dangerous ground for a central banker.

During the depths of the pandemic Dr Lowe attempted to buttress confidence in the economy by providing what is known in central bank parlance as "forward guidance" - reassuring borrowers that interest rates would remain low until 2024.

As it turned out, vaccines against COVID-19 were developed far more quickly than had been expected, ending the pandemic far sooner than anticipated.

When inflation accelerated and the central bank had to respond by hiking rates, many borrowers who acted on Dr Lowe's assurances found themselves caught out. The anger caused by this episode has dogged the current RBA governor ever since.

This scenario has had some warning that it doesn't pay for central bankers to be too clear.

Former US Federal Reserve chair Alan Greenspan once told a US lawmaker that, "If I seem unduly clear to you, you must have misunderstood what I said".

But the tack taken by the government's Reserve Bank review is different.

It recommended greater communication and transparency, not less.

From next year, Ms Bullock will be fronting media conferences following every interest rate meeting.

Her and her fellow RBA board members are also likely to speak at more public forums.

For those under great financial stress, Ms Bullock's ability to explain what the central bank is doing, and why, will be at a premium.