By James Glynn


SYDNEY--The critical task of shaping the Reserve Bank of Australia's economic forecasts will now fall to economist Sarah Hunter, who has been appointed the central bank's assistant governor (economic).

The second RBA outsider to be appointed to a key post within the central bank in recent weeks, Hunter takes the role recently vacated by Luci Ellis, who left to lead Westpac Bank's economics team.

Hunter's appointment represents a further shake-up of the RBA, which has seen a lot of key staff depart recently, including former deputy governor, Guy Debelle, and Ellis. RBA Gov. Michele Bullock took over from Philip Lowe in September.

Andrew Hauser, a senior official at the Bank of England, will join the RBA in early 2024 as its new deputy governor, which brings with it a seat on the central bank's policy-setting board.

The influx of outsiders to the RBA follows a review of its operation by an independent panel begun in 2022, that found the bank's internal culture failed to encourage debate around key policy decisions.

The RBA has raised interest rates at a record pace of 13 times since May 2022, having been slow to respond to a build-up in inflation pressures in late 2021.

Hunter will have responsibility for forming the RBA's forecasts on the economy, including the outlook for inflation and unemployment.

The RBA left interest rates on hold this month, but it remains worried about inflation and has left the door open to further interest rate increases next year.

Hunter has a background in academia, consulting and public service, including in senior executive roles, the RBA said.

Hunter helped establish the Americas, Asia Pacific and Australian offices at Oxford Economics, progressing to the role of chief economist in Sydney. She was also a partner at KPMG in the economics and tax center before joining the Commonwealth Treasury as the head of macroeconomic conditions.

Hunter holds a Doctor of Philosophy (Economics) from the University of Oxford, England.

"I am delighted that Sarah will be joining us. She will bring a unique and diverse perspective to the bank and the leadership team," Bullock said.

Hunter will begin her new role on Jan. 29.


Write to James Glynn at james.glynn@wsj.com; @JamesGlynnWSJ


(END) Dow Jones Newswires

12-06-23 2256ET