Help keep family & friends informed by sharing this articleReserve Bank governor Philip Lowe says it is important in the long term to have "strong" banks that are turning a profit, even though it may be hard to hear for people in the grips of skyrocketing mortgage repayments.
But he argued people needed to understand the risk of letting inflation, or the cost of living, continue to increase. "I understand why some people focus on the risks on the one site, but we've got to be attentive to the risk from higher inflation," Mr Lowe said. "It's corrosive for the economy. And all the evidence is if inflation stays high for too long, expectations adjust and that leads leads to higher interest rates and more unemployment.He was asked what he would say to renters and mortgage holders who are dealing with increasing rates,"People are really hurting, I understand that, but I also understand that if we don't get on top of inflation it means even higher interest rates and more unemployment," he replied.
The banks want home owners and small business owners to go bankrupt. The Government doesn't care. Record profits for banks, energy companies, big pharmaceuticals. No savings passed on to the loyal customers. The system is a JOKE!
U ARSEHOLE👎🏻
The formula for responding to inflation has been corrupted by the rich and wealthy.
I’m surprised anyone is surprised. Our whole culture is corporate profit at all cost! The system is broken and the common person has absolutely no voice. We need another option politically
I really do not get it. Is inflation being caused by corporations raising prices, when there is no need to? Are we being ripped off by corporations? Is it that simple? Please, only polite people enlighten me?
grifters gonna grift , because they can.
He actually doesn't completely make the decisions. I believe there are 9 members on the board!!
The Covid 'free money' coming home to roost. Some of us expected this. The rest were snoozing and enjoying their 'free stuff'.
Because their profits will trickle down 😂
CBA has record profits but is starting to lay off staff. All in the name of margins. Disgraceful after all the bailouts they have had.
Where is the balance of Macro and Micro economics? Increase interest rate brings down overall inflation, also brings down normal people’s life… what LP gov should do is to contribute more to people superannuation, give hope to people. Spend less now, short pain, long term gain.
In the meantime Labor is quietly and surreptitiously taxing us through fuel and anything else they can get their hands on. If the holy grail 10% GST was increased 2-3% it would make a huge difference. 🤦♂️🤦♂️🤦♂️🤬🤬🤬
When the government and people needed more money during pandemic, the reserve should have constrained bank lending. Instead we saw record lending. RBA failed on monetary policy and chose only to protect bank profits.
He only has interest rates to use to control inflation. Everything else that could affect inflation is controlled by the government and JEChalmers keeps telling us it’s all under control and inflation has peaked. The same mob that guaranteed electricity savings & cheaper housing
I feel like he’s just trolling at this point.
Would an ABC journalist care to comment on whether this public disclosure from Phillip Lowe is adequate? It discloses that his wife has an estate trust. This seems only to disclosure that he's not disclosing his interests in the property market.
This man is pure evil
id love him to explain the simpleton idea a rate hike reduces inflation. if it worked then the last 9 should have done the trick right? when only 35% of homes have a mortgage it's literally impossible 2 rein in spending with a rate rise. you know what would work? A WINDFALL TAX
Criminal
Sack him immediately!
I feel sorry for renters once costs rolled on. Good luck guys.
If not now when should govt intervene. Why should normal people suffer while big banks rake in record profits.
Scum
So how much has inflation eased after 9 rate hikes Mr Caring about the hungry people? He understands WTF. He hasn’t felt the inflation one bit. How much does he earn again 🤔
Time to go mate
If wages are stagnant what is causing inflation? I am feeling pretty thick here.
Time for progressive tax rates to be introduced for companies?
He's helping the Banks to claw back the money they lost from the Banking Royal Commission 😕
He’s defending nothing of his interest increases being applied to savings. And yet it’s actually savings that going to ease the spending pressure on the economy.
He and board does not grasp actual reality.
9 board members decide the outcomes for millions of Australians. Fuck that.
There’s no defending this bullshit.
Those with savings should be seeing much more bang for their savings
There’s a special place in hell for people like him…….
It's time Australia deregulated banks and opened up the market to OS banks sure make them insure but you won't be paying rates like you are and will get better returns on money you bank Also allow auspost to be a bank
Increase the Taxation on Bank profits when rates increase (so do their profit margins). We do the same thing for mining.
Labor deflecting their usual economic incompetence onto the RBA...
Government spending. Cut that and you will cut inflationary pressure. Increase some taxes too which dont target owner occupiers paying off home. Eh a wealth tax on anything but. All tools that would do the RBA’s job for it.
Now a Greens Senator questions and doubts the responses of the Head of the Reserve Bank, the Greens Senator shows his credentials are sparce by demanding the the resignation of the Banks Chairman ,Greens and money they akin to pickles and cream!
Increased bank profits in return for lost jobs, lost homes, bankruptcy’s and suicides. Well done RBA !!
ACCC to report back to Jim Chalmers re delay at passing interest rates rise to savings accounts by December 1. What a joke! The efficiency is astounding.
The RBA Board is akin to a bunch of vampires in charge of the blood bank with Count Dracula as chairman. 9 years of graft, corruption and ineptitude has to be paid for somehow.
Why are interest rates the only way mechanism to fight inflation. Seems to me anybody could raise or decrease rates based on an inflation figure. There has to more........
lol..he works for the bank and not the peole..
How many years in a row are we supposed to believe the 'we need strong banks' while people starve? All of them are foreign owned. Australia has been the subject of extractive capital since its inception, but our owners have changed since we've been fully neo-colonised by the US
Give him an average mortgage on an average salary, with a family to feed. He will then get a feel for the amount of handbrake he has already applied. Seems he won’t be happy until the rise in personal bankruptcies matches the rise in bank profits.
How will raising interest rates solve a problem that's mostly caused by a $0.5+ increase in diesel cost? Costs have increased by at least $0.5 a litre on the farm, add $0.5 to trucking cost from farm to market, market to distribution centre, then distribution centre to point sale
BANK MY BE ENDING I have a Plan that is mind blowing ?
Why panic, after all it's just interest rates tremors and not earthquakes tremors, working bit hard will sort out, not expecting rescue teams. Lowe is truly doing a great job in interest earnings, from the buyer who spent 1.5mill to buy 25sq.m property. See that?
Someone should check this guy’s property portfolio.. I’m sure he’s getting bribed by banks to do their bidding.
It’s not his fault, not the RBA or banks. If you borrowed too much it’s your fault as a consumer. Look at car sales, record numbers, little or no discounts. What ever sector you look at pull forward demand is there. We need a circuit breaker ASAP.
So why is CBA’s share price down almost 6% today?
Clearly the climate crisis is the priority here 😹😹😹
year on year what do the banks do with all that money? They invest it to profit in other areas? If only the Commonwealth Bank had not been sold AustralianLabor
Don’t raise interest rates? the $A collapses, & everything we import, including petrol/oil goes up in price, & people can afford less. Petrol & diesel goes up, also means transport costs go up, & then even domestic products become more expensive. -
In Lowe's defence, it's the RBA's government-given responsibility to curb inflation and the only real tool he has is interest rates. He doesn't control government spending, stupid self-harming sanctions on Russia, or lunatic energy/climate change policies.
Why are banks or any company making record profits a bad thing? It's obviously what the investors want, and the companies have a legal obligation to get as much profit as they can. Most times, workers' super is invested as well. If you're angry with your bank refinance.
Should be fired
If you read the RBA minutes from meetings, i believe they never actually ruled out interest rates hikes before 2024.
blatant wealth transfer poor - rich who is behind this fraudulent oppressive banking system? tough question...
And reveals Chalmers’ lies.
The Banks in Australia have never been weak. They have always profited whilst other banks have struggled. There is no real competition in Australia and as a consequence the Banks have been allowed to gouge the Australian people. Not even a Royal Commission had any impact on them.
Lowe admits they started printing money due to the Governments Covid's fear campaign... Over a bloody sniffle FFS.
GeorgiaHitch Lowe conceded he isn't an energy expert. But that would be absolutely vital to understand inflation and why the economy may get stuck. He also hasn't understood that the immigration rate must come down to REDUCE housing demand as supply cannot be increased auspol
This guy is a CROOK.
Come on Albo what is the plan to curb this man?
Merchant banker?
No problem here sorry
Why are we subservient to individuals like this one
Career public servant, earns over $1mil a year and says: Mr Lowe also said he found it 'a bit unfair' that criticism of the interest rate hikes fell on him, noting that 'there are nine of us' on the RBA board who make the decision. These are the kind of leaders we suffer.
C’mon Lowe, this isn’t just profits, these are record profits when many are struggling to keep their homes!