Philip Lowe, the respected economist who was in charge of financial stability at the Reserve Bank of Australia throughout the global financial crisis, will be Glenn Stevens' new deputy at the RBA.Lowe replaces the retiring Ric Battelino, Stevens' deputy through his years as governor to date.Lowe's appointment enhances his image as the front-runner to replace Stevens. But Stevens is expected to stay in the role for some years yet, and the deputy's job has not always been the route to the governorship. Lowe has several rivals in the relatively talent-rich senior ranks of the current RBA.Economist Dr Ian Harper, himself a former RBA official, noted last night that people often look for different qualities in a second-in-command than they look for in a governor. Lowe, a 31-year RBA veteran, took over in 2009 as assistant governor in charge of the RBA's economics department. Before that, he spent five years running the bank's financial stability unit and served two years in a senior role at the Bank of International Settlements. He has a doctorate from MIT and is regarded as one of the bank's strongest intellects; he has taken a strong stance on the role of asset prices in economic growth and instability. Harper called Lowe "a natural successor" to Battelino, noting his work in senior positions across the bank. He described Battelino as a "very loyal and able deputy" and "a good foil" for Stevens, a governor who doesn't shy away from vigorous argument.Announcing the change, Treasurer Wayne Swan paid tribute to Battelino's record, saying he had been "instrumental in helping shape the RBA's timely and effective policy and operational response to the global financial crisis".The 2010 history of Australia and the GFC, Lenore Taylor and David Uren's Shitstorm, describes Battelino as being "far less fearful than… Lowe" about the GFC's likely effect on Australia, and says he argued against over-reaction. Harper said: "Ric is more a traditional central banker. Philip is the next generation, a bit more inclined to take positions and back them up with his training. But you are talking about someone who is prepared to put a position, not someone who is outlandish."Lowe will take up the post on February 14 next year.