Glenn Stevens re-appointed RBA governor until 2016

Glenn Stevens will lead the RBA for a further three years until 2016.
The extension of his term as governor of the Reserve Bank was announced today by Australian treasurer Wayne Swan.
His current appointment was due to expire on September 17 this year.

Stevens has been governor of the RBA since September 2006, helping to steer the country through the GFC following deep cuts to interest rates in late 2008 and early 2009.
ANZ economist Katie Deans notes that the early re-appointment avoids the appointment from becoming a potential political issue. Stevens's current term was due to expire three days after the Federal election. 

"The short term of three years - usually appointments are made for seven years - probably reflects a succession plan to the next governor.

"The likely successor to Glenn Stevens, deputy governor Philip Lowe, was only appointed to his current role last year (February 2012), so was probably viewed as needing more time in that role before being promoted to governor.  The shorter term mirrors the final appointment of the previous governor Ian Macfarlane, before he passed the governorship to Stevens," she says. 

"Given the relative resilience of the Australian economy under Stevens's stewardship, his reappointment should be seen as favourable by markets.  And what appears to now be a clear internal succession plan at the RBA introduces further certainty to Australian the monetary policy process."

The Treasurer also announced the appointment of Kathryn Fagg to the RBA Board for a five-year term (commencing 7 May 2013), replacing Woolworths director Jillian Broadbent. 

Fagg has worked across the resources, transport and finance industries.

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer


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