Deputy Reserve Bank governor Michele Bullock has been chosen to become Australia's first female central bank governor. 

Bullock will replace Philip Lowe when his term expires in September. 

The appointment has been hailed by Treasurer Jim Chalmers as a historic moment.

Bullock, an outstanding economist and respected leader, was widely considered the ideal candidate to lead the Reserve Bank into the future. 

Chalmers and Prime Minister Anthony Albanese have expressed gratitude to Dr Lowe for his 40 years of service at the Reserve Bank, and praised his handling of the transition process. Dr Lowe, in turn, has congratulated Bullock on her appointment and expressed confidence in her ability to deal with the current inflation challenge and implement the recommendations of the RBA review.

Bullock, who has served as deputy governor since 2022, is well-regarded by current and former RBA officials. Her appointment is intended to provide continuity and stability. Changing central bank governors during an inflation crisis could be seen as a radical move.

The government hopes that replacing Dr Lowe with his deputy will ensure a smooth transition and calm the markets and business community. 

September 17 will mark the end of Dr Lowe's 43-year career at the Reserve Bank of Australia.