Michele Bullock has been appointed as the ninth Governor of the Reserve Bank of Australia (RBA), the Australian Treasury reported today (Friday). Bullock takes over from Philip Lowe, who will complete his seven-year tenure on September 17.

Bullock joined the RBA as an analyst in 1985 and will be the first woman to head the institution. She is expected to steer the bank, which acts as the central bank and the issuer of banknotes in Australia, at a time the country is facing the challenges of a high inflation rate and unemployment.

Bullock to Curb Inflation

According to a report released by the Australian Bureau of Statistics, in May, inflation stood at 5.6% in the country. The figure is above RBA's target of between 2 and 3%. In contrast, the unemployment rate was reported at 3.5% during the period.

Commenting about her new appointment, Bullock said in a statement: "I am deeply honoured to have been appointed to this important position. It is a challenging time to be coming into this role, but I will be supported by a strong executive team and the board."

In her role, Bullock will also chair the Reserve Bank Board, the Payments System Board, and the Council of Financial Regulators. The RBA has been in operation for the past 63 years. Its main roles are controlling the inflation rate and unemployment.

Emerging Digital Asset Space

Additionally, Bullock is expected to address the new challenges and potential opportunities in the emerging sector of digital assets. In March, the RBA announced that it was exploring the viability of launching a central bank digital currency (CBDC) for use in offline payments. The Australian government is further working with the Australian Securities and Investments Commission (ASIC ) to regulate cryptocurrencies.

The Australian Treasury and the RBA have lauded Lowe for leading the central bank through economic disruptions, including the challenges brought by the impact of the Covid-19 pandemic and the Russian invasion of Ukraine. Governor Lowe praised Bullock, saying that the RBA was in good hands as it dealt with the current challenges.