Keeping a Lowe profile
Philip Lowe's comments about interest rates at an event in Hong Kong have been criticised as inappropriate at a time when his successor is still dealing with the inflation challenge.
There were no surprises from Michele Bullock today, with the Reserve Bank of Australia leaving the cash rate on hold at 4.35%. The biggest shock in Australian monetary policy circles of the past week can instead be sheeted home to her predecessor.
Philip Lowe broke his silence at a conference in Hong Kong last week, using a panel appearance to warn that interest rates globally may not be high enough. While Lowe is entitled to his opinion, local RBA watchers were irked by the appearance, which came only two months after he vacated the governor’s chair.
In general there is deference shown by former governors (and deputies) of the RBA. They tend to remain in contact and even meet in person for an annual dinner held at the bank’s Martin Place HQ, from which surprisingly few leaks make their way into the media. It’s rare for members of this tight knit central banking fraternity to opine publicly on what the current governor and board should be doing with interest rates.
Which is why some RBA insiders were astonished, and have even drawn comparisons between Lowe and former US Federal Reserve boss Alan Greenspan.
