The Reserve Bank of Australia is undergoing a major overhaul as Governor Philip Lowe reveals he will stay if asked

Philip Lowe will remain head of the Reserve Bank if desired, overseeing a far-reaching overhaul of the major economic institution.

In response to the RBA’s independent review, Dr. Lowe made the recommendations and said he would continue the top spot if the Treasurer asked him to.

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“If I were asked to continue, I would do it. If I’m not asked to continue, I will find another way to contribute to Australian society,” he said Thursday.

His position will be submitted for review later in the year and the Treasurer said the review did not change that process.

Lowe also said he didn’t take the review personally, as one of nine board members and 1,500 employees.

“We don’t always get it right, but we always try to do the right thing for Australians,” he said.

The 51 recommendations in the review, including splitting responsibility for interest rates and general governance between two separate bodies and switching to eight meetings per year instead of 11, are all supported in principle by the federal government.

Lowe also agreed it was time for change, saying the organization will begin implementing the proposals, which will be overseen by a small leadership team.

While the governor agreed with many of the findings, including the need to improve the bank’s communications strategy in the wake of mismanaged forward guidance on interest rates remaining at record lows into 2024, he said the description of how the board would function didn’t fit his reality .

“The notion of board members sitting humbly and accepting the recommendation I am making to them is a far cry from the reality I have lived as governor,” he said.

He welcomed the proposal to add more monetary policy and financial experts to the board, but defended the “diligence and expertise” of the other existing board members.

The governor also struck the right balance in communications, saying there was a danger of overdoing it.

“We need to find a way to get more people talking, and do it in a consistent way that doesn’t create noise,” he said.

Lowe said moving to a lower frequency of meetings — as suggested in the review — could help strike a better balance.

Capital Economics’ Marcel Thieliant said Lowe was unlikely to be reappointed.

“With much criticism directed at the bank’s leadership and culture, it looks increasingly likely that Governor Lowe will be replaced when his term ends in September,” he said.

ACTU Secretary Sally McManus said it’s time the RBA “refocused its efforts towards achieving its goal of full employment and away from imposing ever-higher interest rates on mortgageholders.”

“We look forward to economic leverage being used to support working people and make Australia’s economy and workforce stronger and more equitable,” she said.

Australian Chamber of Commerce chief Andrew McKellar said the changes would be successful if they “strengthen the bank’s effectiveness and foster greater economic certainty for businesses and the economy at large”.

“For the RBA to ensure price stability and full employment, it must have the legitimacy and credibility that comes from clear, carefully set goals and accountability for its results,” he said.