Outsider could be tapped for RBA deputy role

Just days after current RBA deputy governor Michele Bullock was anointed to replace her boss Philip Lowe when his term expires in September, Treasurer Jim Chalmers confirmed the government would "like to fill that deputy governor spot as soon as we can".

"We will look overseas, we will look internally, we will look around Australia, and we'll find the best person," Dr Chalmers told Bloomberg. "We're not in a rush to do it but we'd love to to do it relatively swiftly."

He indicated that "ideally" the position would be filled around the time Ms Bullock formally becomes governor in mid-September.

The Treasurer said the government was looking for a person who was the "best person in their own right" as well as having skills that will complement the incoming governor.

While current assistant governors including Brad Jones and Christopher Kent are considered to be in the running, another insider - current assistant governor (economic) Luci Ellis - is leaving the RBA to take a role as chief economist at Westpac.

Instead, the government may be contemplating recruiting someone from outside the Reserve Bank.

There has been speculation the Australian National University macroeconomist Renee Fry-McKibbin was being considered for the role but the experienced economist has ruled herself out of the running.

Professor Fry-McKibbin said she was not interested in the role and was "very happy at [the] Crawford School [of Public Policy] and ANU".

Professor Fry-McKibbin was a member of the three-person panel commissioned by the government to review the Reserve Bank. Fellow review panel member Professor Carolyn Wilkins is a Canada-based economist and the third panel member, Dr Gordon de Brouwer, recently became the Australian Public Service Commissioner.

Dr Chalmers said that, in addition to leading the RBA's campaign to reduce inflation, Ms Bullock will need to usher in reforms detailed in the RBA review's 51 recommendations, all of which have been agreed to in-principle by the government.

"Michele Bullock's task is obviously primarily to lead an organisation dedicated to this inflation fight," the treasurer said.

"But at the same time ... she leads our combined efforts to reform and renovate the Reserve Bank to make sure that we take it into the future with the best possible combinations of objectives and culture and institutional strength.

"We did the Reserve Bank Review to take it forward into the future, and we very deliberately chose Michele Bullock as the person best placed to implement the recommendations."

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In a speech earlier this month, current RBA governor Philip Lowe announced a slew of changes that will come into effect from 2024, including reducing the number of rate setting meetings from 11 to eight a year, making meetings longer and following each meeting with a media conference by the RBA governor.

Dr Lowe said further changes, including appointing a group of economists to advise the RBA board, publishing board votes and regular public appearances by board members, were likely once necessary legislation and the revised meeting arrangements are "up and running".

The reforms are aimed at strengthening the RBA's management, making board meetings better informed and rigorous and improving the communication of monetary policy, including explaining board decisions.

Dr Chalmers said the review was "done by three eminent people in Australia and overseas, and one of their key conclusions is how do we make the communication of Reserve Bank decisions clearer".

He said Ms Bullock was "a very effective communicator, a very clear, blunt speaker".

"Michele Bullock represents the best combination of experience and expertise, an outstanding economist but also a really well-regarded and well-respected leader, and we'll need that leadership as we reform the Reserve Bank."

The treasurer said he had already had discussions with Dr Lowe, Ms Bullock and his Treasury colleagues about the deputy governor position but denied he had a short-list of candidates.

It is believed that he will take a recommendation to federal cabinet for approval - the same process as followed for Ms Bullock's appointment.

Ms Ellis's imminent departure means the government will also be looking to fill her assistant governor position.

Dr Chalmers said the string of appointments provided "an opportunity for renewal in the deputy governor spot and the assistant governor spot at the same time, and I think that's a good combination too".

"I have some ideas in my mind, and people have no shortage of ideas. There's a number of wonderful people, frankly, that we'll consider for both," he said.