RBA appoints a new governor
by Collin Fox, 03/08/2006

On the 1st of August the Reserve Bank of Australia announced that as of the 18th of September, Mr. Glenn Stevens will take the reigns of the RBA as governor. The appointment of Mr. Stevens signifies the end of a highly successful decade of leadership from current bank Governor Ian MacFarlane. During Ian McFarlane’s tenure, Australia has experienced one of the longest periods of sustained growth in history, low and stable inflation, and solid employment growth combined with historically low unemployment rates.

As Mr. MacFarlane steps from the saddle and hands the reigns to Mr. Stevens, many may wonder, who is the man that will soon have the ability to change the size of my mortgage firmly in his hands? Glenn Stevens was born in Sydney in 1958 and is said to be an ‘average suburban man’ and ‘as honest as they come’, (The Australian. Wednesday, August 2, 2006). Mr. Stevens was educated at the University of Sydney where he received a first class honours degree in economics; he then went on to complete a Masters at the University of Western Ohio. Mr. Stevens distinguished career at the RBA includes positions such as: Head of the Economic Analysis Department, Head of the International Department, Assistant Governor and Deputy Governor.

Mr. Stevens is certainly highly regarded amongst his peers with long-time friend Colonial First State Economist Warren Bird stating, ‘You wont find a more intelligent monetary policy economist anywhere in the world’. ANZ treasury economist Warren Hogan suggested that, ‘The Treasurer couldn’t have picked a better man for the job’, (The Australian. Wednesday, August 2, 2006). Only time will tell, however the general consensus is that the right decision has been made in appointing Mr. Stevens to the head of the Reserve Banks of Australia.