For the first time since its establishment in 1960, Australia's central bank will be headed by a woman. Michele Bullock will replace Philip Lowe as the governor of the Reserve Bank of Australia (RBA) after his seven-year term.

This appointment comes during a period of economic challenges in Australia, including rising prices and efforts to address inflation. The financial services industry in Australia is predominantly male-dominated and faces significant gender pay disparities.

Michele Bullock, the current deputy governor of the Reserve Bank of Australia (RBA), will assume the role of governor on September 18. She acknowledged the challenges ahead but expressed confidence in the support of the executive team and boards. Bullock emphasized her commitment to fulfilling the RBA's policy and operational objectives for the benefit of the Australian population.

Michele Bullock, who has worked at the Reserve Bank of Australia (RBA) for nearly 40 years, is considered an RBA insider. Throughout her career, she has held various senior management roles, including assistant governor and head of the payments policy department.

In April 2022, she was appointed as the deputy governor of the RBA. Australian Prime Minister Anthony Albanese praised Bullock's extensive experience and expertise as an economist, stating that she brings a fresh perspective to lead the RBA during ongoing economic challenges faced by Australia and the world.

Australia is experiencing a significant moment as Michele becomes the first woman to lead the Reserve Bank of Australia (RBA), according to Finance Minister Kathy Gallagher. With the rising cost of living, the RBA faces the challenge of addressing inflation.

Outgoing governor  Lowe expressed confidence in Michele's abilities and praised her appointment. The RBA has already increased interest rates 12 times since last May, leading to mixed reactions from economists.

Currently, the main interest rate stands at 4.1%, the highest in 11 years. The objective of these rate hikes is to make borrowing more expensive and curb spending, thereby reducing inflation.

Criticism was directed towards  Lowe for suggesting that Australians should reduce spending and work more to cope with higher borrowing costs. In a recent financial industry conference, he stated that individuals could improve their cash flow by cutting back on expenses or seeking additional employment. 

Lowe defended the RBA's decision to raise interest rates for the twelfth time, emphasizing that homeowners were not significantly affected. An external review of the RBA, the first in 40 years, resulted in 51 recommendations, including the need for a more transparent monetary policy framework and increased accountability.

Government data revealed that the financial services industry in Australia still has one of the highest gender pay gaps, with a disparity of 28.6% between male and female remuneration, surpassing the national average of 22.8%.