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Reserve Bank boss apologizes to Australians who took out mortgages after he promised no rate hikes until 2024 – but instead hit them with massive hikes
- Reserve Bank Governor Philip Lowe has apologized to the borrowers
Reserve Bank Governor Philip Lowe has apologized to borrowers who took out mortgages expecting interest rates to remain at a record low of 0.1 percent.
“I’m certainly sorry if people listened to what we said and acted on what we said and now regret what they did,” he said Monday at a Senate hearing on economics.
“That’s unfortunate and I’m sorry that happened.”
Dr. Lowe repeatedly promised last year that the cash rate would remain 0.1 percent “at the earliest” until 2024, but borrowers have endured seven straight interest rate hikes since May.
Cash interest rates are now at a nine-year high of 2.85 percent and economists expect interest rates to rise another 0.25 percentage point in December.
A borrower with an average mortgage of $600,000 saw his monthly payments skyrocket by $839 to $3,145 in just six months.
Reserve Bank Governor Philip Lowe has apologized to borrowers who have taken out mortgages expecting interest rates to remain at a record low of 0.1 percent.