Philip Lowe to Be Replaced by Michele Bullock as Reserve Bank Governor

Trying2SaveABuck on 14/07/2023 - 10:47
Last edited 14/07/2023 - 15:35 by 2 other users

In a massive shake up the RBA Governor Philip Lowe will not be given another term and will be replaced by Michele Bullock. Michele Bullock named as next RBA Governor, Philip Lowe’s term comes to an end

I have been critical of Lowe in recent years but the governor of the RBA is probably the most important job in the nation from an economic stand point. Now I'm not a fan of Lowe but on reflection I kind of feel him being given the boot is a 'bit harsh'.

He has had no choice but to up interest rates to try bring inflation down and as someone with a home loan I'm not a fan of the blunt tool the RBA uses in rate rises to slow the economy but it is the 'only' tool they have. Really it is the appointed political leaders who need to be held to account for not managing the economy better (pervious Josh Frydberg currently Jim Chalmers)

I'm sure Michele Bullock will be a fine replacement (likely/maybe even better than Lowe) I couldn't care less that she is a women we live in 2023 and find it a bit strange our PM and Treasurer think that is something that needs to be announced.

She clearly has the CV to lead the RBA and got there on merit mentioning she is a women cheapens the appointment - in my opinion she has gotten the job on merit.

Regardless do people think Lowe deserved the sack, is it fair enough we bring someone new in? Given the circumstances no one else in the world has managed monetary policy much better or worse so what else could Lowe do?

I'm in two minds I understand the change but perhaps it is a tad harsh.

Poll Options

  • 121
    Lowe Deserved the sack
  • 360
    Lowe was a bit hard done by realistically what else could he has done?
Financial

Related Stores

Reserve Bank of Australia
Reserve Bank of Australia

Comments

    • Brianqpr on 15/07/2023 - 20:26

      Movable GST would be fairest, the biggest spenders pay the most.

  • sidesw1pe on 14/07/2023 - 15:00
    +1

    she is a women

    • payless69 on 14/07/2023 - 15:51
      -2

      Just wait for the ultrasmart Hounerable Mrs Harris to take the helm of worlds largest economy. Vladimir and Ji Jin are getting their eternal comedy!
      Narendra will phone Rishi and say: Thank you my son, slowly and steady we will get them!

  • peacefulpeanut on 14/07/2023 - 15:04
    +3

    I can’t stop wondering why people are wasting their breath blaming RBA and Philip Lowe for their own financial predicament or mortgage hardship.

    First, the RBA does not enforce anyone to buy property, empty their super account or take a lot of loans under a promise that interest rate would be on hold for at least three years. Presumably people were then based their decision either on rational thinking or fear of missing out, and they only have themselves to blame (or bless for dodging a bullet).

    Secondly, whatever announced by Lowe was approved by a Board, comprising RBA senior management including himself and non-RBA appointees including from the private sector and universities. What we do now is shoot the messenger; we put high hope on his replacement but my point is that the RBA Governor might not have the final say on everything, and replacing Lowe will not solve everyone's problems, but the government's.

    • Malik Nasser on 14/07/2023 - 15:51
      +1

      You can't say that here, it make too much sense.
      Where else are we to go to direct our self inflicted rage?

    • netjock on 14/07/2023 - 22:42

      You know the drill

      Take all this risk

      If things go wrong expect to be bailed out. If things go right tell everyone who would listen about your investment skills.

      People are just absolutely useless these days

  • sidesw1pe on 14/07/2023 - 15:12

    It was the RBA's responsibility to keep the financial system balanced/stable through the use of their "tools". Phil obviously had no idea what he was doing, because, surprise surprise, one day suddenly inflation was a huge deal and he needed to frantically dig into his toolbox. I guess he can't really be blamed for raising interest rates, but had he a clue and reacted sooner, perhaps the impact could have been minimised.

  • CurlCurl on 14/07/2023 - 15:42
    +1

    It was the RBA's responsibility to keep the financial system balanced/stable through the use of their "tools". Phil obviously had no idea what he was doing, because, surprise surprise, one day suddenly inflation was a huge deal and he needed to frantically dig into his toolbox. I guess he can't really be blamed for raising interest rates, but had he a clue and reacted sooner, perhaps the impact could have been minimised.

    Some people just don't understand. Phil Lowe is one of NINE members that make the decision. He then delivers the decision.

    The Reserve Bank Board comprises nine members: three ex officio members – the Governor (who is Chair), the Deputy Governor (who is Deputy Chair) and the Secretary to the Treasury – and six non-executive members, who are appointed by the Treasurer.

    • Trying2SaveABuck on 14/07/2023 - 15:45

      it is kind of why I feel like Phil is being scapegoated im not saying he doesn't deserve some criticism but it isn't like ppl where complaining when loans were at 2 percent and they had access to cheap money.

      but the comments about no rate rises till 2024 were pretty unacceptable

  • CurlCurl on 14/07/2023 - 15:59

    but the comments about no rate rises till 2024 were pretty unacceptable

    Agree…..but that was a decision by the board.

  • ECE on 14/07/2023 - 16:19

    How Lowe can he be? His position is temporary and will be over in a few months.
    A new face would be a good way to freshen the RBA 🤭

  • Clickbait on 14/07/2023 - 16:23
    +2

    For a Decade, that's 10 years, the RBA pushed ZERO interest Rates, and created a massive bubble in the housing and stock markets, now bursting in slow motion before your very eyes.
    But Hey, now the Big 4 have so much more in mortgages propping up their Balance Sheets.
    Then, one day, the RBA Board said "Oops, our Bad" and does a complete about turn on Interest rates, and proceeded to shovel increase after increase onto everyone.
    You know the old saying, "Don't pee on my leg and tell me it's raining"
    .
    For example, if the RBA was concerned about our interest rates, vis'a'vis the $US Exchange Rate, why would they not consider using rates to stop the $A crashing world wide.
    or the government could place a Credit Card charge on all transactions to slow demand. Sorry, my bad, the Banks are already doing that. Who is in charge????
    .
    Pointing at Lowe just makes us look there instead of here, or anywhere or anyone else for that matter, especially our politicians, who know Jack about anything real in this world.
    .

    • peacefulpeanut on 14/07/2023 - 16:47

      You are asking the government to become our nanny. Once they did what you want, and the result was not favourable to you and so many people, you would post another rant here why the government didn't do the other way around.

      In simple words, you trap yourself in a neverending cycle of ignorance.

  • Iwantthebestprice on 14/07/2023 - 18:17
    +1

    While I think Lowe was the right man for the job, and he was in a tough predicament, and I hate the fact that someone was instilled who is more aligned to the government meaning more favourable monetary policy which favours the current government, I just want my mortgage repayments to stop going up for a bit and for the governor to wait and see if this “mortgage cliff” materialises and slows inflation. At the moment the governors sledge hammer of stopping inflation is only affecting 30% of the population (people with mortgages)!
    I think we require an increase to GST to 12% so the affects of inflation are felt by all in the community not just mortgage holders, or renters coping the increase in rent due to landlord cost servicing the loan.
    Just my 2 cents on this opinion

  • mlburnian on 14/07/2023 - 18:30

    The sheep will think it’s all the RBAs fault.. Albo and Chalmers are good at politics..I will give them that

    • Trying2SaveABuck on 14/07/2023 - 19:10
      +1

      Yes but terrible at running a nation…

  • gromit on 14/07/2023 - 19:17
    +1

    He needed to go. Not for rate rises which was him doing his job and not for the silly prediction of rates staying low. He was however way to slow in responding to inflation. Rates should have been higher and that should have started much earlier.

    • greatlamp on 15/07/2023 - 12:17

      1. In response to a collapsing economy driven by lockdowns and supply shortages, the RBA lowers interest rates - a solution designed to increase inflation due to a lack of demand - not address a lack of supply

      2. The RBA pivots from looking at data of inflation expectations to only looking at data of actual inflation, which guarantees their response will be too late.

      "the Board will not increase the cash rate until actual inflation is sustainably within the 2 to 3 per cent target range."
      3 November 2020
      https://www.rba.gov.au/statistics/cash-rate/

      This has never been the case previously

  • greatlamp on 14/07/2023 - 19:53
    +2

    In a massive shake up the RBA Governor Philip Lowe will not be given another term and will be replaced by Michele Bullock.

    By selecting the deputy? Installing literally anyone else would be a shake-up. Even keeping Lowe on for another term would be more controversial.

  • BluebirdV on 14/07/2023 - 20:53

    Wait till all these people come off fixed interest rates. A mate of mine says he thinks it will be like the GFC in the US in 2009.

    • Trying2SaveABuck on 14/07/2023 - 21:30
      +1

      It is possible but incredibly unlikely as unemployment is still really low

      • greatlamp on 15/07/2023 - 11:34

        Hopefully true.

        Just type "UK mortgages" into Google and look at the headlines…

        The UK has a very similar loan structure, variable rates, 2 year fixed for many recent borrowers, 30% of the population with a mortgage.

  • mrvaluepack on 14/07/2023 - 20:53
    +1

    He should have raised IR earlier so that the speed and gradient of the IR rise would not have been so sharp. Like others have said, RBA needs to stop copying USA because they have 30 year fixed home loans over there while we are only stuck with 5 year max.

  • Toph Beifong on 14/07/2023 - 21:51
    +1

    Why do people assume that he is entitled to a contract extension? Only 2 of the previous 8 RBA governors have received an extension (Glenn Stevens & Ian Macfarlane).
    Like any other employee you need to demonstrate that you deserve a renewal of contract. This time the Government is of the view that its time for change.

    • gravel on 14/07/2023 - 22:05

      Exactly and both Steven's and Macfarlane deserved to be re-appointed. Low does not. He left rates too low when fiscal stimulus was high achieving nothing more than a housing boom in 2021. Left people with the impression rates would remain low until 2024. Then despite traditional economic theory inflicted too many rises in too short a period. There is a lag affect.
      Finally he blames wage increases for the small amount of demand driven inflation we have rather than the corporates who have been price gouging and profiteering.
      He had seven years, that's plenty of time.

  • mountaineer on 14/07/2023 - 23:02
    -5

    Labor is leading this country in a terribel direction politically and now economically.

  • RefusdClassification on 15/07/2023 - 04:14

    I want a job with the reserve bank. Hire me! I want to be paid hundreds of thousands of dollars per year for going to a meeting once a month.

  • Dack Smith on 15/07/2023 - 05:22
    +1

    So replace the inept head with the inept deputy who was part of the previous decision group

    What a great plan

    What a vision

    We have stability now

    The RBA has a fresh start with a lady who has only been with the RBA since the start of her career

    A new set of eyes

    A new future

    Australians should rejoice as Dr Chalmers has done a superb job

  • drfuzzy on 15/07/2023 - 06:57

    Better than Sandra Bullock.

    • Baysew on 15/07/2023 - 11:44
      +2

      Australian remake of Speed. Driving the economy bus while trying to dodge inflation, however if it slows down to much the economy will blow up.

  • Lawrencep93 on 15/07/2023 - 09:20
    +1

    They can keep firing RBA bosses as they please but inflation isn't coming down until the Government works on driving inflation down through less spending and culling part of their workforce freeing up workers for private industry over migration and also they need to get harder on unemployment benefits for jobseekers I have had many people apply for jobs that were BS applications purposely to get knocked back to say "look I can't get a job" when the advert says something like confirm you have X to submit the application then they write I don't have X on purpose to get knocked back

  • WreckTangle on 15/07/2023 - 09:30

    Bye bye Phil lol

  • Sinnerator on 15/07/2023 - 10:18

    what's it matter, they just do what their told

  • TheOtherLeft on 15/07/2023 - 10:44
    +1

    She was Lowe's deputy and her entire career was at the RBA so she's a product of it. I don't think anything will change but just a name change

  • tabitha731 on 15/07/2023 - 12:13

    Regardless of who takes that spot, they're dammed if they do and damned if they don't. But I wishy Michelle all the best in her efforts. It's not an easy job

  • panos on 15/07/2023 - 13:44
    +1

    By geesus people same shit different day she is a 40 year veteran of the reserve bank, done nothing apart from waiting in the wings for the time to knife Brutus and build up a multi million $$$ real estate portfolio.

    He/she/her/they/ whatever is not living in the real world just like Lowe……

    It will be the same shite but a different day……

    I wonder sometimes ????

  • Yotta00 on 15/07/2023 - 14:22

    Glass cliff strikes once again.

  • jrvb42 on 15/07/2023 - 16:15
    +1

    The replacement should have been external, not someone who was working as 2IC when recent decisions were made. This is a pointless replacement.

    • Trying2SaveABuck on 15/07/2023 - 17:02

      if it goes balls up it is on Jim and Albo i guess….

  • The Wololo Wombat on 15/07/2023 - 17:49

    Why do people get annoyed at the RBA? They are just responding how the government has managed the economy and the global influences on our (tiny) nation…

  • beesquared on 15/07/2023 - 19:31
    +1

    Like most governments they like to try and impress the public. Increased interest rate, unhappy voters, he cops flak for doing what he is meant to. So just to give the impression they care about voters, the government do this rubbish.

  • Morphio25 on 15/07/2023 - 20:44

    Good riddance to bad rubbish.

    • infinite on 15/07/2023 - 21:00

      Have they fired Michele Bullock already ?

      • Morphio25 on 16/07/2023 - 16:43
        +1

        Unfortunately not.

  • infinite on 15/07/2023 - 21:00

    How on earth is Michele Bullock considered "a massive shake up" by anyone?

    She's literately supported and backed every last decision Philip Lowe ever made while he was with the RBA & publicly stated she would have made all the same decisions he did.

    You'd have to be a complete moron to think this changes anything.

    • Trying2SaveABuck on 15/07/2023 - 21:32
      +1

      You'd have to be a complete moron to think this changes anything.

      our PM and treasurer

  • whitepuma on 15/07/2023 - 22:20

    Remember Lowe wasn't solely making the decisions, he had a board that would all vote and decide together. In addition to that, the problem with the economy, hyper inflation, and everything else we are experiencing aren't at the fault of the RBA, Their all trickle on effects to everything that's happened in the pandemic etc.

    l like to think of it like this. On a titanic sinking scenario, with the sinking ship being the economy, Lowe is the person saying only women and children go on the life rafts. People are hating on him for not letting everyone on, but also, it's not his fault there aren't enough rafts, it's not his fault the ship hit the iceberg.

    • plmko on 16/07/2023 - 18:56

      TBH if it weren't for his over-zealous comments about the rate hike window in 2021, no one would care. But he stuck his neck out and is being used as the punching bag.

  • pogichinoy on 16/07/2023 - 00:54
    +4

    Sigh

    Seems like a number of you still aren’t aware. Let me repost for the upteenth time.

    The RBA quote is:

    "The Board will not increase the cash rate until actual inflation is sustainably within the 2 to 3 per cent target range. For this to occur, wages growth will have to be materially higher than it is currently. This will require significant gains in employment and a return to a tight labour market. The Board does not expect these conditions to be met until 2024 at the earliest."

    People tend to forget the entire quote and only focus on "not raising rates till 2024". Obviously inflation figures aren't in the targeted 2-3% range, which is why the RBA acted earlier than 2024 and increased rates.

    The media are also to blame for poorly reporting the actual quote.

  • burns13 on 16/07/2023 - 07:40

    Hardly a massive shakeup. She's been at the bank for 40 years second in charge with Phillip Lowe and experts say her comments haven't shown she's any different from Lowe's.

  • fozzie on 16/07/2023 - 08:26
    +1

    I don’t know if the new one would be better. But I do think it’s disgraceful that the mortgage rates keep going up. There are families loosing their homes as unable to pay. The house prices and rent are just too expensive especially in Sydney and Melbourne. The government should think of ways to improve the housing situation. They are making it worse. I’m lucky as my outstanding mortgage is low, but I do feel for the less lucky ones.

  • echelon6 on 16/07/2023 - 09:12

    Same shit different flavour. He needed to go though.

  • plmko on 16/07/2023 - 18:54

    That's why we have the interest rate halts. That's old Phil's happy ending as he rides off into the sunset……the rate hikes will be back soon.

  • Genghiz88 on 16/07/2023 - 23:15

    I don't really like another RBA "lifer" , Michele Bullock being the RBA governor. Would like to paraphrase Einstein's quote "Insanity is doing the same thing again and again hoping for a different result". Need to be creative and think out of the box to tackle inflation. And not "lets have more unemployment to tackle inflation".

  • Illyria on 16/07/2023 - 23:41

    The King of Property Bubbles is dead. Long live the Queen!

  • dfens on 21/07/2023 - 20:00

    Late post but I work with someone whose husband works at the RBA. She told me her husband reckons that on a personal level Michele is a lot more "down to earth", approachable and understanding of the common man and woman than Low ever was. Take this for whatever it's worth. Whether policy changes she's obviously just a figurehead.

Login or Join to leave a comment
Login Join