‘Poor Phil’: Shock claim on RBA sacking

A senior Liberal has said the government should give “poor old” Philip Lowe another chance amid fevered speculation his replacement could be named within weeks.

Treasurer Jim Chalmers is expected to make a call on the fate of the embattled Reserve Bank governor, whose term expires in September, this month.

But the opposition finance spokeswoman Jane Hume argued the government shouldn’t serve Dr Lowe his notice for doing what he could in the battle against skyrocketing inflation.

“We’re in the middle of a cost-of-living crisis right now. Consistency is very much the key to managing the economy,” the senator told Nine.

“I do feel he has been unfairly demonised like the government have pointed to high rates and said ‘see, that’s his fault’

“Poor old Philip Lowe is doing his job.”

Senator Hume’s support for Dr Lowe has not been repeated by Opposition Leader Peter Dutton or Coalition treasury spokesman Angus Taylor.

Finance Department secretary Jenny Wilkinson and Treasury secretary Steven Kennedy have been named as the frontrunners to replace him should Dr Chalmers not extend the governor’s term for another three years.

Assistant Treasurer Stephen Jones remained tight lipped when asked about the secret short list of contenders, but said they are be “outstanding candidates” for the job.

“You’ll have to wait a couple of weeks, the full cabinet will make its decision. What I can say is all the names that you’re speculating on [are] outstanding candidates,” he told Sky News.

RBA deputy governor Michele Bullock and former central bankers David Gruen and Guy Debelle have also been named as potential contenders.

Dr Lowe, who said as late as 2021 the cash rate would remain at record lows until 2024, has since overseen the RBA’s most rapid tightening cycle in decades in a bid to tame inflation.

The central bank board left the cash rate on hold at 4.1 per cent when it met on Tuesday but warned further increases could be required in the near future to bring inflation, now at 5.6 per cent in the year to May, back to its 2 to 3 per cent target.

But homeowners with an average $500,000 mortgage on a variable rate are still now paying an estimated $1,134 per month than they 14 months ago, according to Rate City.

Finance Brokers Association of Australia managing director Peter White said many mortgage holders were now finding it difficult to refinance their loans.

“The RBA must take responsibility for their poor insight and management that has led to the current issues facing those across Australia who are paying off a home loan and renting,” he said.