Four Labor MPs have questioned the future of Reserve Bank governor Philip Lowe following nine consecutive rate rises from the central bank, suggesting his seven-year term should not be extended.
Reserve Bank governors are appointed to seven-year terms and Lowe’s expires on September 17 this year. The previous two governors, Glenn Stevens and Ian Macfarlane, both had their terms extended by three years to complete a decade in one of the nation’s most important economic jobs.But with a sweeping review of the central bank due to be finalised and handed to Treasurer Jim Chalmers in late March, there is a growing expectation that Lowe will not stay on beyond September.
“And that might be problematic for the current governor in these super challenging times. He has baggage associated with his comments outside the RBA board meeting notes that he might find hard to put down.”for suggesting, as late as November 2021, that the central bank’s cash rate would remain at 0.1 per cent until 2024. The RBA instead started lifting rates in May last year.
“I would hope that since September to now, the RBA have started that process of measuring the impact of rate rises on the most populous housing tenure in NSW.” “When it comes to the governor’s reappointment, his term doesn’t conclude until September. In the ordinary course of events, that appointment would be considered closer to the middle of the year. When the time comes, I’ll do the usual consultation with my colleagues and we’ll come to a view,” he said.
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