Reserve Bank Australia boss Philip Lowe was berated for being ‘out of touch’ as he dined with billionaires at a swanky event, hours after causing further interest rate pain for struggling mortgage holders.
Shortly after millions of families were hit with higher mortgage payments, the RBA board hosted a swanky dinner for 130 business and political leaders at Perth’s State Reception Center on Tuesday night.
Seven board members and five RBA staff were flown to Perth for the A-list soiree, Western Australia’s first event in five years.
Prime Minister Mark McGowan, businesswoman Diane Lee Smith-Gander, former Fortescue Metals boss Elizabeth Gaines and other companies feasted on grilled barramundi and lemon pie as Dr Lowe defended why the cash rate was raised from 3.6 percent to 3.85 percent.
During dinner, farmer Tony Seabrook lashed out at Dr. Lowe and the board, describing that they were out of touch with ordinary people.
The president of the Pastoralists and Graziers’ Association of WA rose to confront Dr. Lowe as he addressed the crowd.
Businesswoman Diane Lee Smith-Gander was one of 130 guests at the lavish dinner hosted by the RBA in Perth on Tuesday evening
“You have to have some real people on the board doing real things and bearing the brunt of decisions where I think in many cases you and the board are very insulated from actual involvement,” Mr. Seabrook called out.
Dr. Lowe hit back, claiming that RBA board members were representative of 26 million Australians.
“We have nine people on the board, nine dedicated and leading Australians trying to make decisions in our collective best interest,” he explained.
Mr. Seabrook later redoubled his attack on Dr. Lowe and the RBA board in a TV interview.
“He’s out of touch, the whole board is out of touch,” he told Sky News Australia.
“And my question to the governor was why don’t you have some really serious practical people on that council… people in manufacturing, people in small industry and exporters and farmers.
“Why don’t you have some real people there, instead of the board that just seems out of touch.”
RBA boss Philip Lowe (pictured) dined and dined with Perth’s movers and shakers at dinner
Guests feast on grilled barramundi and lemon pie at the Perth State Reception Center as the RBA governor defended his decision to raise interest rates
Dr. After the board dinner, Lowe defended the importance of meeting community and business leaders across Australia.
“It was great catching up with community leaders in Perth,” said Dr Lowe The Western Australian. “It was the conversation that was great.”
Former Fortescue Metals boss Elizabeth Gaines also defended the event.
“It is appropriate for the RBA to meet in (different) parts of Australia,” she said.
“I sympathize with anyone who struggles to put food on the table.”
The RBA remained tight-lipped about the cost of the dinner when Daily Mail Australia contacted them on Wednesday.
“We will not provide the specific guest list or cost for this event to protect the privacy of attendees and for other confidentiality reasons,” a spokeswoman said.
“Information on total Reserve Bank spending is published in our annual report.”
She added that Tuesday night’s event in Perth was part of the RBA’s “wider connections programme.”
“The Reserve Bank Board meets regularly in capitals other than Sydney and a dinner is held with members of the local community, including representatives and leaders from politics, business, the public sector and education and community organisations,” the spokeswoman said. . said.
“These dinners are an opportunity for the community to hear directly from the board, and for the board to hear directly from the community about the economic issues that affect them.”
It is estimated that the latest rate hike will add another $78 per month to average borrowers on a $500,000 loan. Dr. Lowe also warned that more rate hikes could be on the horizon.
Western Australia’s Up Late podcast host Ben Harvey criticized the guest list, questioning what multimillionaires would bring to the debate over the cost of living of ordinary Australians.
‘How many of these roosters suffer from mortgage stress? How many other than a few token non-profit executives actually have mortgages?’ Harvey said.
“Jesus, how many of them would only have one house?”
Western Australian Prime Minister Mark McGowan also attended the RBA board dinner