From the moment he became deputy governor of the Reserve Bank in 2012, Philip Lowe was always the obvious choice to replace Glenn Stevens as governor of the central bank.

When Tony Abbott and Joe Hockey were calling the shots, however, he might have been only a 50-50 chance. An external appointment was also considered to be on the cards.

Treasurer Scott Morrison's announcement that Lowe will replace Stevens on September 18 will therefore please the markets, even though it's not a great surprise. Under Stevens' decade-long leadership the central bank has at times come in for criticism, but few market players wanted to see a destabilising shake-up.

Lowe has made it clear in speeches that he and Stevens see the world and the Australian economy in much the same way.