Australia has attempted a change of guard in the central bank. Accordingly, deputy governor Philip Lowe will take over as the next governor of Reserve Bank of Australia. The transition comes at a crucial time when Australia is battling a rising dollar and low inflation which has already turned into deflation.

Lowe will replace the current incumbent Glenn Stevens. The announcement has come shortly after the Reserve Bank’s just concluded interest rate pruning to a new record-low of 1.75 percent to boost the economy, reports AFP.

“The market will be entirely comfortable with the appointment,” National Australia Bank senior economist David de Garis noted.

Lowe began his stint at the RBA in the 1980s and became deputy governor in 2012. Lowe’s seven-year term will begin on Sept. 18. While serving as the head of the Financial Institutions and Infrastructure Division at the Basel-based Bank for International Settlements, Lowe’s research paper on financial stability role of central banks was widely acclaimed. He did his Ph.D. under economist Paul Krugman at the Massachusetts Institute of Technology, says a report in The Wall Street Journal.

For the new governor, managing the diverse currents in the economy will be a challenge as the economy is traversing a rocky path, from a mining-led boom to one based on services.

RBA Governor Stevens will be stepping down after a full decade at the helm. He was fairly successful in steering the economy through the global financial crisis and is held in high esteem internationally.

According to a report in The Guardian, Lowes’s elevation has drawn support from all sides. Shadow treasurer, Chris Bowen, extended Labor’s support and said:“Dr Lowe is one of the finest Australian economists of his generation.”

Treasurer Scott Morrison also announced the appointment of Ian Harper, who is heading the review panel of Australia’s competition laws, as a part-time member of the RBA from 31 July.