Reserve Bank governor Michele Bullock settled on a $2 million holiday home on the same day the RBA increased the cash rate. The purchase, which closed at $2,050,000 in Yamba, NSW, occurred on March 17, the day of the second consecutive 0.25% rate rise.
Bullock and her husband Ian jointly own two other investment properties. The four-bedroom home includes two bathrooms and a wine cellar, with the spacious property located around 1.5 hours from Byron Bay. The purchase was noted in Bullock's updated declaration of material interests on the RBA's website, published on March 17.
Bullock's other homes include her primary residence in Russell Lea and two investment properties in Chiswick and Drummoyne. Bullock earns $1,195,275 per year in her taxpayer-funded role.
The RBA's decision to hike rates was contentious. The monetary policy board lifted the cash rate by 25 basis points to 4.1 per cent in a split five-four decision, the tightest since the board started publishing vote tallies. The hike was the second rise in consecutive months as war in the Middle East compounds inflation concerns.
RBA governors make declarations of material interests voluntarily to promote openness and accountability, in addition to declarations required under the Reserve Bank Act. Members must declare to other board members any material personal interest they have in a matter relating to the affairs of the board, with some exceptions for monetary policy and financial stability.
Asset purchases by senior public officials are lawful and routine. However, the coincidence of timing has drawn attention to broader questions about institutional transparency. The RBA is accountable directly to the Parliament and to the general public for the way it carries out its responsibilities. The early disclosure of Bullock's property interests reflects existing compliance frameworks, though the timing of the announcement alongside the rate decision has sparked public discussion about the optics of such purchases during periods when higher borrowing costs affect millions of Australians.
Each 25 basis point rise adds about $90 in monthly repayments to a typical loan of $600,000 on an owner-occupied property. Two of Australia's big four banks have restated their belief there will be another cash rate increase in May to 4.35%, with ANZ saying this should mark the end of the current tightening cycle.