Reserve Bank of Australia governor Michele Bullock lands a huge pay rise to earn $1.262million - more than TWICE what her US counterpart does
Australias most powerful banker is paid $100,000 more than her male predecessor and at least double what her counterpart gets in the United States.
Australias most powerful banker is paid $100,000 more than her male predecessor and at least double what her counterpart gets in the United States.
Michele Bullock was paid $1.262million during the last financial year as the first woman to lead the Reserve Bank of Australia.
This was $114,750 more the $1.147million total remuneration package for her predecessor Philip Lowe, covering a base salary with benefits.
She is among the worlds best paid central bankers, having a base salary thats more than double that of her counterpart at the US Federal Reserve.
The woman in charge of setting interest rate policy has received a pay rise that is equivalent to an average, Australian full-time salary as borrowers continue to battle in a cost-of-living crisis.
It comes as mortgage holders now pay 69 per cent more on average monthly repayments than they did in early 2022.
The Reserve Banks annual report for 2023-24 showed Ms Bullock was paid $1.057million as governor after taking over in September 2023.
She was paid another $205,380 during her three months as deputy governor during the last financial year.
The total added up to $1.262million but is likely to be much higher in 2024-25 - her first full financial year as RBA governor.
Australias most powerful banker is paid $100,000 more than her male predecessor, new figures show (Michele Bullock is pictured right with former RBA governor Philip Lowe)
This was also more than double US Federal Reserve chairman Jerome Powells base salary of $A290,300 - converted from $US191,500 - which is set by Congress rather than an independent Remuneration Tribunal like Australia.
Her total remuneration of $1.262million is also significantly higher than her Bank of England counterpart Andrew Baileys $A979,643 - converted from £498,952.
Ms Bullocks pay is also almost double that of the man who appointed her - Treasurer Jim Chalmers on $438,113 and more than triple a backbencher MPs base salary of $233,660.
Treasury secretary Steven Kennedy was paid a total remuneration of $959,257 in 2023-24, which included a base salary of $816,296.
Neither Ms Bullock nor Dr Kennedy receive bonuses but the RBA governor has a lot more accrued long service leave, having joined the Reserve Bank in 1985.
Her base salary of $811,108 was more than double US Federal Reserve chairman Jerome Powells $US203,500 base salary - worth $A308,493 - which is set by Congress rather than an independent Remuneration Tribunal like Australia
But unlike Labor cabinet ministers - who could lose their job at the next election - Ms Bullock was last year appointed for a seven-year term.
Inflation remains higher in Australia than many other advanced economies and the Reserve Bank is holding a two-day meeting on Monday and Tuesday next week.
The 30-day interbank futures market regards a rate cut next month as only a 10 per cent chance, with Ms Bullock in recent weeks ruling out any relief before Christmas.
This is despite the US, UK, Canada, European Union and New Zealand already cutting interest rates this year.
Inflation data for the September quarter is due out on Wednesday, with the Commonwealth Bank forecasting a low number bringing forward a rate cut to December.
It is predicting headline inflation will plunge to 2.9 per cent, down from an annual level of 3.8 per cent in the June quarter.
This figure covers volatile items like petrol prices falling and the federal governments one-off $300 electricity rebates.
The woman in charge of setting interest rate policy has received a pay rise that is equivalent to an average, Australian full-time salary (pictured is a Sydney auction)
But underlying inflation, excluding volatile items, was still expected to be above the RBAs 2 to 3 per cent target.
The Commonwealth Bank, Australias biggest home lender, is expecting the trimmed mean measure of inflation to fall to 3.4 per cent, down from 3.9 per cent.
If our forecast for underlying inflation comes to fruition we expect the narrative around inflation being both too high and ‘sticky’ in Australia to lessen, it said.
