Australia’s most powerful banker earns $100,000 more than his male predecessor and at least twice what his US counterpart earns.
Michele Bullock was paid $1.262 billion during the last financial year as the first woman to head the Reserve Bank of Australia.
That’s $114,750 more than his predecessor Philip Lowe’s $1.147 million total compensation package, which covers a base salary with benefits.
He is among the highest-paid central bankers in the world and has a base salary that is more than double that of his counterpart at the US Federal Reserve.
The woman in charge of setting interest rate policy has received a pay rise equivalent to an average full-time salary in Australia, as borrowers continue to battle a cost of living crisis.
It comes as mortgage holders now pay 69 per cent more in average monthly payments than at the start of 2022.
The Reserve Bank’s annual report for 2023-24 showed Bullock received $1.057 million as governor after taking office in September 2023.
She was paid another $205,380 during her three months as deputy governor during the last financial year.
The total amounted to $1.262 billion, but is likely to be much higher in 2024-25, her first full financial year as RBA governor.
Australia’s most powerful banker earns $100,000 more than her male predecessor, new figures show (Michele Bullock pictured right with former RBA governor Philip Lowe)
His base salary of $811,108 is a third higher than Prime Minister Anthony Albanese’s salary of $607,516 as prime minister before retirement and benefits.
This was also more than double US Federal Reserve Chair Jerome Powell’s base salary of A$290,300 (converted from US$191,500), which is set by Congress rather than an independent Remuneration Tribunal like Australia. .
His total compensation of $1.262 million is also significantly higher than that of his Bank of England counterpart, Andrew Bailey. $A979,643 – converted from £498,952.
Ms Bullock’s salary is also almost double that of the man who appointed her – Treasurer Jim Chalmers at $438,113 – and more than triple a backbencher’s base salary of $233,660.
Treasury Secretary Steven Kennedy received total compensation 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 many more long-service leave accrued, having joined the Reserve Bank in 1985.
His base salary of $811,108 was more than double US Federal Reserve Chairman Jerome Powell’s $203,500 base salary, valued at A$308,493, which is set by Congress rather than a Court of Appeal. Independent remuneration like in Australia.
But unlike Labor cabinet ministers, who could lose their position at the next election, Bullock was appointed last year for a seven-year term.
Inflation remains higher in Australia than in many other advanced economies and the Reserve Bank will hold a two-day meeting on Monday and Tuesday next week.
The 30-day interbank futures market sees a rate cut next month as only a 10 percent chance, and in recent weeks Ms. Bullock has ruled out any relief before Christmas.
This is despite the fact that the United States, the United Kingdom, Canada, the European Union and New Zealand have already cut interest rates this year.
Inflation data for the September quarter is due out on Wednesday, with the Commonwealth Bank forecasting a low figure, bringing forward a rate cut to December.
It predicts headline inflation will fall to 2.9 per cent, below the annual level of 3.8 per cent in the June quarter.
This figure covers volatile items like falling gas prices and one-time $300 electricity rebates from the federal government.
The woman in charge of setting interest rate policy has received a pay rise equivalent to the average Australian full-time salary (pictured, a Sydney auction)
But core inflation, excluding volatile items, was still expected to be above the RBA’s 2 to 3 percent target.
The Commonwealth Bank, Australia’s largest property lender, expects the trimmed average measure of inflation to fall to 3.4 per cent, down from 3.9 per cent.
“If our forecast for core inflation comes true, we expect the narrative that inflation is too high and ‘sticky’ in Australia to diminish,” he said.