Treasurer Jim Chalmers has shrugged off suggestions there would be “awkward” tension between himself and outgoing RBA governor Philip Lowe on an upcoming overseas trip.
The government announced on Friday that they will not renew the tenure of the RBA governor after 7 years in the role.
The Treasurer and Dr Lowe will both travel to India on Sunday to represent Australia’s interests at the next G20 meeting of global finance ministers next week.
Speaking about the upcoming trip with ABC News on Saturday, Dr Chalmers was asked if he had any concerns over whether it would be awkward between him and Dr Lowe after this week’s announcement.
“No, not for one second,” he said. “We‘ve had a number of conversations.”
“One of the really wonderful things about how this appointment was made is the very supportive way that Philip Lowe backed in our choice of Michelle Bullock to succeed him at the Reserve Bank.”
He said Dr Lowe has the respect and gratitude of the government for his efforts over his tenure and praised the governor’s reaction to the news.
“He is behaving in an impeccable, dignified way,” he said.
“We work really well together … We are professionals. I have a high regard for him and he‘s highly regarded internationally.
“We chose Michelle Bullock, to take the bank forward but that in no way diminishes the dedication of Philip Lowe.”
Philip Lowe is the first governor in nearly 30 years not to have his tenure extended.
He has faced heavy scrutiny as the boss of the RBA particularly from Australian homeowners who have copped the whiplash of twelve interest rate hikes since May 2022.
The series of rate rises came after Dr Lowe infamously promised that interest rates would not rise until at least 2024.
Both of Dr Lowe’s predecessors, Glenn Stevens and Robert Macfarlane, had their terms extended to 10 years.
Michele Bullock will become the ninth governor of the RBA, with her seven-year term beginning on September 18.