And Ms Bullock might be based in the city, but she is no stranger to the New England having grown up in the region.

Ms Bullock moved to Armidale aged nine with her family and went to Armidale High School before eventually attending St Albert's College at the University of New England (UNE).

She first took up medicine at university before switching to economics at UNE, graduating with honours.

Ms Bullock has previously described herself as a proud "country girl", and joined the RBA as an intern in her honours year.

And, her career has only gone from strength to strength.

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"It is an absolute honour and I'm really happy I've got such great support from the government. So thank you very much," she said in her public first words after being confirmed for the job on Friday.

Federal cabinet on Friday morning ticked off Treasurer Jim Chalmers' pick of the deputy Reserve Bank governor who he called a "first class economist who also has remarkable leadership attributes."

Ms Bullock will be the ninth governor of the RBA and is the first woman in the role.

"I think a big part of my role is going to be ... leading the bank through change," Ms Bullock said.

Ms Bullock's career with the central bank has spanned over four decades, with the past 10 years being spent in various assistant governor roles until her appointment as deputy governor in April 2022.

The prominent economist was deemed a strong contender among a shortlist of respected top bureaucrats.

"Ms Bullock is eminently qualified to lead this national institution," Prime Minister Anthony Albanese told reporters in Canberra.

"Michele's will be an important job at an important time with the challenges we face globally. Challenges which I have of course have been discussing at the NATO summit over recent days."

Dr Chalmers said Ms Bullock's appointment was "genuinely about who is best placed to take the Reserve Bank forward into the future."

After facing scorching criticism throughout the latter years of his seven-year term, Dr Lowe's term will now expire in September.

"We thank Philip Lowe for more than decades of dedication and commitment and service, not just to the Reserve Bank and not just to the economy, but to our country as well," the Treasurer said.

"Phil Lowe goes with our respect, he goes with our gratitude, and he goes with dignity."

The RBA Governor released a statement saying the Treasurer has made a first-rate appointment.

"I congratulate Michele on being appointed Governor. The Reserve Bank is in very good hands as it deals with the current inflation challenge and implementing the recommendations of the Review of the RBA. I wish Michele all the best,' Dr Lowe said.

The decision to elevate Ms Bullock continues the recent convention of appointing from within the RBA. Dr Chalmers said he consulted with business, unions and the opposition in making his decision.

Dr Chalmers and Dr Lowe are due to head to India next week for G20 meetings.

The new governor is due to start her seven-year term on September 18. Ms Bullock's appointment leaves a vacancy for the role of deputy governor, which will be filled in the coming months.

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