(31 January 2013 – Australia) As Australian Prime Minister Julia Gillard announced her decision to call a 14 September election, speculation has arisen on Reserve Bank of Australia (RBA) governor Glenn Stevens’ chances of extending his term.The election will take place just three days before Stevens’ current seven-year term is due to end, economists believe the government could opt to announce an extension to his term before voters go to the polls.
Bank of America Merrill Lynch Australia chief economist Saul Eslake told reporters the timing of the election meant it would fall to the Treasurer Wayne Swan to decide whether to extend Stevens’ term or appoint a replacement.
The appointment (or reappointment) of an RBA governor is typically announced ahead of the end of the current term.