NO.004

APPOINTMENT OF RESERVE BANK DEPUTY GOVERNOR AND BOARD MEMBER

I am pleased to announce the appointment of Mr Ric Battellino as Deputy Governor of the Reserve Bank of Australia (RBA) for a term of five years, with effect from 14 February 2007.

The appointment in September 2006 of Mr Glenn Stevens as Governor of the RBA created a vacancy at the Deputy Governor level. I have carefully considered candidates from both within and outside the Bank, and I am confident that Mr Battellino possesses the requisite balance of qualifications and experience to make a strong contribution to the RBA as Deputy Governor.

Mr Battellino has had a distinguished career at the RBA. Between 1973 and 1989 he held various positions in the Research and Domestic Markets Departments, and in 1981-82 held the position of Sloan Fellow at the London Business School.

Between 1989 and 1991, Mr Battellino served as Head of the Domestic Markets Department. Subsequently, he was appointed Head of the International Department and, prior to his appointment as Deputy Governor, Mr Battellino had held the position of Assistant Governor (Financial Markets) since 1994.

Mr Battellino was born on 7 July 1951 and educated at the University of Queensland, where he received an honours degree in economics in 1972.

I am also pleased to announce the appointment to the Reserve Bank Board of Mr Graham Kraehe AO, effective from 14 February 2007 for a period of five years.

Mr Kraehe is currently Chairman of BlueScope Steel, and a Director of Brambles Industries and Djerriwarrh Investments Ltd. Mr Kraehe was Chairman of NABGroup from 2004-05, and a Director from 1997-2005. He was also a Director of News Corporation from 2001 to 2004, and Southcorp Limited from 1994 until 2001.

Mr Kraehe was appointed as an Officer of the Order of Australia in 2003, for service to Australian corporate life as a leader in the development of the manufacturing, financial and wine sectors, the expansion of export markets, the fostering of trade relations, and recognition of industry responsibilities to employees, the natural environment and the community. Mr Kraehe has a Bachelor of Economics from the University of Adelaide.

Mr Battellino’s appointment has been made in accordance with section 24 of the Reserve Bank Act 1959 which provides for the appointment by the Treasurer of the Reserve Bank Governor and Deputy Governor.  Mr Kraehe’s appointment is made in accordance with section 14 of the Reserve Bank Act 1959 which provides for nine Board members including the Governor, the Deputy Governor, the Secretary to the Department of the Treasury and six other members.

I am confident that the new appointees will contribute to the ongoing sound conduct of monetary policy, which has helped to deliver an unprecedented period of economic growth, coupled with low inflation and falling unemployment.

I take this opportunity to congratulate Mr Battellino and Mr Kraehe on their appointments.

14 February 2007

CANBERRA

Contact:

Renae Stoikos – 02 6277 7340