Behind closed doors: Govt defends Reserve boss over meeting with big banks
The government has defended Reserve Bank governor Philip Lowe’s decision to give a private briefing to a group of bankers on interest rate hikes before making public statements.
Lowe will be questioned about the hikes to the cash rate at a Senate estimates hearing on Wednesday, as pressure mounts regarding his future in the top job at the Reserve Bank.
The RBA head gave a closed-door briefing to major banks last week, and cabinet minister Bill Shorten said there wasnāt anything wrong with that.
āI donāt think thereās anything untoward from a banker talking to bankers. Journalists talk to journalists in parliament ā¦ so I donāt see anything untoward,ā Shorten told ABC Radio on Monday.
āIām not going start into Monday morning coaching of Saturdayās game ā for me, whatās important is how do we provide cost of living relief.ā
The Reserve Bank moved last week to raise interest rates to 3.35 per cent, the ninth consecutive hike.
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Lowe said it was likely further interest rates would be coming in a bid to tame inflation levels.
Treasurer Jim Chalmers has refused to comment on Loweās future as Reserve Bank governor, with his term in the role due to end in September.
A decision on whether his term should be extended is set to be made in coming months, following the handing down of a review into the Reserve Bank.
āThe decision about the Reserve Bank governor ā¦ will be taken closer to the middle of the year in consultation with the prime minister and our cabinet colleagues,ā the treasurer said.
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ā(The review) is an opportunity to think about the best structures and processes and objectives of the Reserve Bank going forward.ā
Shorten said the recent interest rate increases had made the financial situation difficult for many families.
āPeople paying mortgages are the tip of the spear in the Reserve Bank strategy to tackle inflation, and thatās tough, because people have got mortgages to pay, and the nine increases are painful,ā he said.
āTheyāre incredibly tough for people whoāve got no means of replacing the income that ā¦ theyāve now got to contribute to their mortgage.ā
Crossbench senator Jacqui Lambie said while she didnāt want to influence the Reserve Bankās decision, a change of leadership would be welcome.
āItās always nice to get fresh blood in these places. I think heās more than happy to go himself. I tell you what, weāre all belting him,ā she told the Nine Networkās Today program.
āSeriously his tenure is up ā if he doesnāt put up and say Iām going anyway, I think itās time for some fresh blood.ā
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