OPINION: It is instructive that one of the hottest topics at Philip Lowe’s Senate appearance was housing, because it’s making his fight against inflation that much harder.
If the contract of Reserve Bank governor Philip Lowe isn’t renewed in the coming months, then hison Wednesday may have been his last. If so, he bowed out with a clear message on inflation.
Those in the “on hold” camp noted the higher-than-expected headline number was distorted by the reinstatement of higher fuel excises, and the monthly increase in the headline number slowed to 0.3 per cent in April, following a gain of 0.5 per cent in March and one of 0.6 per cent in February. Lowe answered several questions about the rental crisis, rubbishing suggestions that rental growth has almost peaked – the RBA sees it rising from 4.9 per cent at present to about 10 per cent, the highest level since June 1989.
But Lowe is also painfully aware of the damage he’s inflicting on mortgage holders. He acknowledged the proportion of income Australians are spending on mortgage payments is at a record high, and assistant governor Brad Jones said as many as 15 per cent of variable-rate owner-occupier borrowers could have negative spare cash by the end of the year, potentially forcing them to slash their spending behaviour.
Nigeria Latest News, Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
RBA bans PwC as Philip Lowe is grilled over firm’s access to central bankReserve Bank Governor Philip Lowe has confirmed the central bank has underpaid up to a thousand former staff members and enlisted under-fire consulting giant PwC to assist to reimburse the lost payments.
Read more »
RBA Governor ‘not concerned’ about wages growth getting out of controlRBA Governor Philip Lowe says he is “not concerned” about wage growth getting out of control after being asked about the impact it had on other countries. “In the US, wages growth is five per cent … I’m not concerned we’re going to see that here, it’s a possibility, but it seems to me a fairly lower possibility,” Mr Lowe told Senate Estimates on Wednesday. “Our forecast is that wage growth picks up a bit more – the wage price index grows maybe by four per cent this year.” “In a normal course of things, four per cent wages growth is not problematic.”
Read more »
'We're serious': Why RBA is not driving inflation down quickerPhilip Lowe detailed why the Reserve Bank is intentionally not bringing down inflation quicker, as the latest data reveals an annual increase to 6.8 per cent.
Read more »
RBA boss refuses to declare inflation 'victory', defends 'unpopular' rate hikesPhilip Lowe faced a grilling at a Senates estimate hearing this morning - as another rate rise is weighed up next week.
Read more »
Inflation lifts interest rate rise bets, as Lowe warns on wagesStronger than expected inflation of 6.8 per cent has increased the chance of a rate rise as soon as next week, as RBA boss Philip Lowe urged a lift in productivity.
Read more »