Australian Treasurer Jim Chalmers said he expects to discuss with the government’s senior leadership team “soon” whether Reserve Bank Governor Philip Lowe will receive an extension to his term or be replaced.
(Bloomberg) — Australian Treasurer Jim Chalmers said he expects to discuss with the government’s senior leadership team “soon” whether Reserve Bank Governor Philip Lowe will receive an extension to his term or be replaced.
“I’ll be taking my recommendation to Cabinet colleagues about the position of the Reserve Bank governor up soon,” Chalmers told Australian Broadcasting Corp. radio Wednesday, while refusing to provide a date. “I don’t want to preempt the timing or the nature of that discussion.”
An announcement on the RBA chief would “ideally” come immediately after that, Chalmers said. The governor’s seven-year term expires mid-September.
Responding to a question a few hours later following a speech in the northern city of Brisbane, Lowe stuck with the position he has held whenever the subject of his reappointment has been raised.
“If I was asked to continue in the role, I would be honored to do that,” he said. “If I am not asked to continue in the role, I will do my best to support my successor.”
Speculation is mounting in local media that an announcement will come later this week, given Chalmers and Lowe will travel to India on Sunday for a Group of 20 meeting of finance ministers and central bank governors. The treasurer previously said a decision will be made before parliament resumes on July 31.
The Australian Financial Review reported Wednesday, citing unidentified officials, that while Cabinet hasn’t yet signed off on Chalmers’ recommendation, a meeting could be quickly convened with Prime Minister Anthony Albanese dialing in from overseas.
Chalmers also said he’s had a preliminary discussion with his opposition counterpart Angus Taylor about the appointment.
“We’ve had a conversation about the various people that have been speculated on including the incumbent — Governor Lowe himself,” Chalmers said. “I’m not going to go through a list and say who is or isn’t on a shortlist for obvious reasons. But there are a handful of people that have been speculated upon who of course, would be qualified.”
The secretary of the Department of Finance Jenny Wilkinson and her Treasury counterpart, Steven Kennedy, are both seen as frontrunners for the role, while current RBA No.2 Michele Bullock is also a likely contender.
(Updates with comments from Governor Lowe in fourth-fifth paragraphs.)
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