British banker to become RBA deputy governor

The Reserve Bank of Australia has selected Bank of England executive Andrew Hauser as its new deputy governor and as a member of the Reserve Bank board.

Hauser is set to begin his five-year term in January, bringing with him over three decades of experience at BoE.

He currently serves as the executive director for markets, overseeing all aspects of the design and execution of balance sheet and financial market operations.

Additionally, he manages the UK's official foreign exchange reserves and coordinates market intelligence and analytical advice to the BoE's monetary and macro-prudential policy committees.

Hauser has also held senior roles across most of the BoE's other major functions, including leading its Inflation Report, international economic analysis, and regional agencies' intelligence gathering.

Treasurer Jim Chalmers said Hauser's appointment "strikes the right balance" between providing deep central banking experience and offering a fresh, global perspective to the work of the RBA.

"Hauser comes highly recommended for the position of deputy governor of the Reserve Bank, and his appointment will help ensure we have the most effective central bank to meet our current and future economic challenges," Chalmers said.

"The government is confident Hauser has the skills and experience to help the RBA navigate an increasingly complex and uncertain economic environment."

Chalmers said the government will work with the RBA to ensure Hauser can commence his role as soon as possible, with the expectation that he will start ahead of the RBA's first meeting next year.

Former RBA deputy governor Michele Bullock, who succeeded Philip Lowe as governor in September, congratulated her successor on his appointment.

"I warmly congratulate Andrew on his appointment as the deputy governor of the Reserve Bank and look forward to working with him," Bullock said.

"He has great experience and will bring a welcome external perspective to the bank and the Reserve Bank board."

Hauser said he is "deeply honoured" to be asked to serve as the RBA's next deputy governor.

"I look forward to working closely with Michele Bullock, her senior team and the talented staff of the RBA to serve the Australian people, and to help make a reality of the recommendations of the RBA Review," he said.

Hauser's appointment comes as the government plans to reform and modernize the RBA, including introducing the Treasury Laws Amendment (Reserve Bank Reforms) Bill 2023.

The bill will enact recommendations from the RBA Review released in April and is the culmination of months-long discussions with the central bank and Opposition.

The bill proposes to revoke the treasurer's powers and establish the RBA's primary goal of promoting the economic prosperity and welfare of the people of Australia.

It also confirms the RBA's dual mandate of ensuring price stability and contributing to full employment.

Yesterday, Chalmers stated that the proposed legislation reflects the government's objective of maintaining a "world-class" central bank with a monetary policy framework capable of meeting current and future economic challenges.

He added that these changes are part of the government's broader efforts to "reform, renew, and refocus the nation's key economic institutions to help meet current and future challenges."