FED:Lowe, Ridout to join RBA ranks

AAP General News (Australia)
12-05-2011
FED:Lowe, Ridout to join RBA ranks

By Andrea Hayward

CANBERRA, Dec 5 AAP - The latest appointments to the Reserve Bank of Australia (RBA)
strike a balance of stability and fresh thinking, Treasurer Wayne Swan says.

Cabinet approved the appointment of Philip Lowe as the bank's deputy governor and Australian
Industry Group {AiG) chief executive Heather Ridout as a board member on Monday afternoon.

"I think their appointments will ensure the ongoing strength of the RBA board, which
of course continues to operate at a very difficult time in the global economy," Mr Swan
told reporters in Canberra on Monday.

The treasurer said it was up to Ms Ridout to decide whether she would continue working
as a lobbyist with the AiG.

She had been appointed because of her experience, talent and committed advocacy for
the business community rather than any views she held on particular issues, he said.

"She's got a very deep understanding of what's going on, not only in the wider economy
but most particularly in the manufacturing industry and I think she'll serve the country
well on the board."

Change to the federal government's Fair Work Act is one area about which Ms Ridout
has been outspoken and critical of Labor.

Mr Swan said she had been vocal on a range of issues but that was no impediment to
her being appointed to the board.

"She had a range of opinions to express [recently] and not all of them were ones that
were seen uncritical of the government," he said.

"There's been plenty of people who have sat on the board who have made comment from
time to time."

Ms Ridout is the fourth woman to be appointed to the board. She will boost the number
of women on the nine-person board to three. The others are Jillian Broadbent and Catherine
Tanna.

Ms Ridout said the appointment was an honour.

"I have an abiding interest and commitment to strong and balanced economic policies,
and to have the opportunity to serve Australia in this role will be a great privilege,"

she said in a statement.

She will replace Graham Kraehe, whose term expires in February.

Mr Kraehe had made a valuable contribution to the deliberations of the RBA, Mr Swan said.

"His experience and knowledge of business has been of considerable benefit to the board's
monetary policy deliberations," Mr Swan said.

Dr Lowe has been appointed for seven years. He will succeed Ric Battellino, who retires
from the RBA in February after 39 years.

Mr Swan said Mr Battellino had made an invaluable contribution to the RBA and Australia's
economic stability over four decades.

"He of course has been at the bank in a period of great turmoil in the international
economy in recent years," he told reporters in Canberra.

The fact that Australia, unlike most other developed economies, had avoided a recession
was testament to the hard work of Mr Battellino and the RBA more generally, Mr Swan said.

On Tuesday Mr Battellino will sit in on his last RBA board meeting as it decides whether
to lower the cash rate for the second consecutive month amid growing concerns about stability
in the eurozone.

Dr Lowe started at the RBA in 1980, and has served as the Head of Financial Institutions
and Infrastructure Division at the Bank for International Settlements between 2000 and
2002.

Between 2004 and 2009, Dr Lowe oversaw the RBA's work on issues related to financial
stability and payments system policy.

He has served as the economic assistant governor since April 2009 and has been the
chief economic adviser to the governor and the Reserve Bank board.

Dr Lowe holds a PhD from the Massachusetts Institute of Technology and a Bachelor of
Commerce (Honours) in Economics/Econometrics from the University of NSW.

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