Lowe set for top job
Economists said the decision to extend Mr Stevens' term by just three years was a sign the bank had set in train a succession plan.
Dr Lowe, who has been with the RBA for more than three decades, was appointed deputy governor in February last year.
But Dr Lowe probably needed "more time" in the role before being promoted to governor, ANZ economist Katie Dean said.
The three-year extension to Mr Stevens' tenure mirrors that of his predecessor, Ian Macfarlane.
"The most savvy market players have been listening intently to Dr Lowe's speeches over the past year," TD Securities' head of research, Annette Beacher, said.
"Dr Lowe particularly favours higher productivity as a long-term solution for lower inflation."
Saul Eslake, the chief economist of Bank of America Merrill Lynch in Australia, said Dr Lowe was the clear front-runner.
"For [assistant governor] Guy Debelle to get it, who I guess would be the most obvious other internal candidate, would sort of be tantamount to an admission that they got it wrong in appointing Phil as deputy," he said.
Frequently Asked Questions about this Article…
Philip Lowe is the Reserve Bank deputy governor who has been with the RBA for more than three decades. He was appointed deputy governor in February last year and is widely seen as the clear front-runner to succeed Governor Glenn Stevens in about three years, according to economists quoted in the article.
The article reports that the decision to extend Glenn Stevens’ term by just three years was interpreted by economists as a sign the Reserve Bank has set in train a succession plan. The short extension is seen as deliberate timing to manage leadership transition.
TD Securities’ head of research Annette Beacher said the most savvy market players have been listening intently to Dr Lowe’s speeches over the past year. The article notes Lowe particularly favours higher productivity as a long-term solution for lower inflation, which market observers have taken notice of.
ANZ economist Katie Dean is quoted saying Dr Lowe probably needed 'more time' in the deputy role before being promoted to governor. At the same time, other economists such as Saul Eslake described him as the clear front-runner.
Yes. Assistant Governor Guy Debelle is mentioned as a plausible internal candidate. The article quotes Saul Eslake saying that if Debelle were to get the top job it would, in his view, be tantamount to an admission that appointing Phil Lowe as deputy was a mistake.
The article highlights that Dr Lowe particularly favours higher productivity as a long-term solution for achieving lower inflation — a view market participants and researchers have noted.
According to the article, Philip Lowe has been with the Reserve Bank for more than three decades and was appointed deputy governor in February last year.
The article notes that the three-year extension to Glenn Stevens’ tenure mirrors the three-year extension given to his predecessor, Ian Macfarlane, suggesting a precedent for this sort of transitional timing.
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