Broken Promise on Interest Rates? Should Dr Lowe Go?

Over the last 30 years, interest rates have been drastically falling in Australia. As a result, house prices have been skyrocketing upwards. At the end of 2020, Reserve Bank Governor Philip Lowe reduced interest rates to a record low of 0.10%. In early 2021, Dr Lowe indicated that these record low rates would stay until at least 2024. Australians raced out and bought more houses fuelling the property boom creating one of the world’s most unaffordable markets. Household debt levels continued to rise. Then in May 2022, Dr Lowe broke his promise two years early and started raising interest rates. They have risen every month ever since costing young Australians hundreds of dollars per month in mortgage repayments, not to mention massive cost of living increases. Dr Lowe induced hundreds of thousands of Australians into taking out mortgages by saying that interest rates would not rise until 2024. He is now hurting them. Should Dr Lowe go?

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