Philip Lowe was criticized for suggesting that Australians should cut spending to cope with rising interest rates – while continuing to live a life of luxury.
The Reserve Bank of Australia announced its twelfth consecutive rate hike on Tuesday the official spot rate to an 11-year high of 4.1 percent.
Dr. Lowe sparked outrage on Wednesday when he suggested Aussies should review their spending habits and work more to keep their mortgage payments in check.
“People can afford to pay their mortgages even if they move from fixed rate loans to floating rate loans,” he said at the Morgan Stanley summit in Sydney.
“People have to cut back, and I think that’s going to be the environment we’re going to be operating in for a while.”
Everyday Aussies were outraged that Dr. Lowe lives in a multi-million dollar home in an upscale suburb, earns a salary of nearly $900,000 and has access to some of the most exclusive airline lounges in the country.
RBA boss Dr. Philip Lowe (pictured enjoying a round of golf in March) lives a life of luxury as everyday Aussies struggle to make ends meet after another rate hike
Dr. Lowe was labeled “tone-deaf” and speculation grew that he could soon be replaced when his seven-year term with the RBA ends in September.
Australian entertainer Em Rusciano expressed his outrage with a brutal swipe at the embattled RBA boss by posting an iconic meme of Paris Hilton wearing a tank top with the phrase ‘Stop Being Poor’.
“Has anyone placed Philip Lowe’s head on this shot yet? If not, Internet – climb up!’ Rusciano tweeted Thursday.
A follower chimed in and replied, “He should wear it until the next RBA announcement!”
Former Labor minister Stephen Conroy was another who did not hold back.
“This is absolutely outrageous in the way the Reserve Bank governor is distorting the statistics to support his preconceived notions,” Conroy told Sky News Australia.
“This guy has lost the plot. He gave the middle finger on his way out to the Australian public as he is shoved out the door.”
Many Aussies begged Prime Minister Anthony Albanese and Treasurer Jim Chalmers to intervene.
“Tone deaf #PhilipLowe assumes we all have the ability to demand more working hours and further cuts… The Prime Minister must take the lead,” one man wrote.
Em Rusciano did a brutal dig at Dr. Philip Lowe by posting an iconic meme
A ‘tone deaf’ and ‘out of touch’ Philip Lowe has come under fire from thousands of Aussies
One woman added: ‘Economy! How much more can a retiree or family save on basic pay? Philip Lowe has his head in the clouds.
A third wrote: “Philip Lowe’s policy is that everyone can share bedrooms and eat cheap bananas while sitting on the hill laughing.”
The media also targeted the RBA governor for his comments.
“Instead of a CEO sleeping in, we should put neoliberal economists, the board of directors of the RBA and leaders of large companies on the average Australian wage for six months (no access to savings) and show them how it all works – budgeting , find housing, etc., in this economy,” wrote Amy Remeikis of The Guardian.
‘We are talking about food, transport and housing. Which ones should we cut back, if we’re already struggling?’
Rick Morton of The Saturday Paper added, “Look, I know what he’s trying to say. I know this is just a number puzzle to him and technically that would “solve” it, if only it were a sudoku. Read the room once, I beg you.”
Dr. Lowe’s advice to cash-strapped mortgage holders is to cut back on their spending
As mortgage holders grapple with rising payments, a generous job bonus helps the RBA boss pay off his home in Sydney’s eastern suburbs
It was recently revealed by Dr. Lowe paid off the mortgage on his house at half the interest Australians paid every day thanks to a generous work allowance.
Dr. Lowe and his wife bought their house in Randwick in Sydney’s eastern suburbs in 1997 for $1,075,000, funded in part by a $241,000 loan from the RBA at half interest.
A short walk from Coogee Beach, the five-bedroom property with its park-style garden and wrought iron fence is conservatively worth at least $4 million.
Dr. Lowe received a total compensation package of $1,037,709 during fiscal year 2021-22, according to the RBA’s latest annual report released last October.
His base salary of $890,252 alone would have been enough to buy a mid-priced home in Brisbane.
Other Benefits Dr. Lowe enjoys free access to the Qantas Chairman’s Lounge, Virgin Australia lounges and membership of the National Press Club.
The latest furor comes weeks after Dr. Lowe dined with corporates at a lavish dinner in Perth just hours after the RBA announced last month’s rate hike.
Reserve Bank of Australia Governor Philip Lowe defended the decision to announce a twelfth consecutive rate hike
Dr. Lowe told the Morgan Stanley on Wednesday that an increase in the minimum wage was a major contributor to the board’s decision to raise interest rates.
‘However, we will get ourselves into trouble if we accept that all workers must be compensated,’ explained Dr Lowe.
“Because if you accept that premise, and inflation is seven percent, wage increases are in line with that, what do you think inflation will be next year? It will be high again and then you will have higher wage increases again.’
“If we hadn’t tightened monetary policy, the cost of living would have been higher for longer. This would hurt all Australians.’