First female RBA governor to bring 'reform agenda'

Finance Minister Katy Gallagher said Ms Bullock's appointment was historic, but the position would carry considerable scrutiny, with mortgage holders under pressure from rising interest rates.

"She does have a reform agenda ... she's got the leadership skills necessary to guide that path over the next few years, so it's an incredibly important appointment," Senator Gallagher told ABC Radio on Monday.

"Any job at this level at the level of governor of the Reserve Bank is going to bring incredible scrutiny as it should. These are important jobs making important decisions that have effect on Australians' lives."

Ms Bullock's elevation comes as the Reserve Bank moves to implement reforms including fewer board meetings each year and the governor having to front the media after meetings to explain the bank's decision making.

Senator Gallagher said more transparency was needed from the bank around its decisions on interest rates, but Ms Bullock would be well equipped for the role.

"I have no doubt that incoming governor Bullock understands that there will be incredible scrutiny on the job that she does, and that the bank does as a whole," she said.

"She will ... bring all of her immense experience and qualities to that job and be a tremendous governor of the Reserve Bank."

Ms Bullock has worked at the Reserve Bank since 1985, became an assistant governor in 2010 and has been the deputy since 2022.

Shadow treasurer Angus Taylor welcomed Ms Bullock's appointment, saying having a governor independent of the government was crucial.

The opposition had previously opposed the prospect of federal department secretaries being appointed as Reserve Bank governor.

"We know historically an independent Reserve Bank delivers lower inflation, the data on this has been very, very clear for many decades around the world," he told ABC Radio.

"It's not appropriate to have a secretary of an economic department who has been formulating government policy to become the governor."

Mr Taylor said the perception of independence for the bank needed to be maintained, no matter the standing of senior public servants being considered for the role.

"Right now it's obviously a time when it's more likely to be tested," he said.

"What we need though, most of all, is a government that brings down policy that reduces inflation."