Reserve Bank boss unleashes: Philip Lowe slams FIVE myths about what he said about the Australian economy in his final message to the country

The Reserve Bank’s outgoing governor Philip Lowe has unleased on his critics and the media claiming five myths circulated about him that were untrue.

Dr Lowe used spin to suggest his prediction in 2021 that interest rates would stay on hold until 2024 ‘at the earliest’ was a forecast and not a promise.

‘In addition to these points, there are many other points that have been attributed to me, including: a that interest rates would not go up until 2024,’ he told the Anika Foundation in Sydney.

He made the defence even though his made those predictions in several monthly Reserve Bank decision statements in early 2021, suggesting the cash rate would stay on hold at a record-low of 0.1 per cent until 2024. 

‘The board will not increase the cash rate until actual inflation is sustainably within the two to three per cent target range. The Board does not expect these conditions to be met until 2024 at the earliest,’ Dr Lowe said in March 2021.

Dr Lowe on Thursday also refuted suggesting young people get a flat mate after making comments about the rental crisis during a Budget estimates hearing.

‘Everybody needs to get a flatmate; people need to work more hours to make ends meet; and young adults should stay at home because of the rental crisis,’ he said.

He also had a go at Nine’s A Current Affair for showing footage of him walking to a podium at a Morgan Stanley event to Justin Timberlake’s Can’t Stop the Feeling.

‘Yet, I did not make these points. Nor did I choose Justin Timberlake’s to accompany me as I walked a recent podium.’

Dr Lowe also had a go at the media for being sensationalist.

‘My view is that we will get better outcomes if the public square is filled with facts and nuanced and informed debate, rather than vitriol, personal attacks and clickbait,’ he said.

‘As a society, we have got work to do here.

‘My experience here highlights the difficulties of communicating in the social media and digital age. 

‘Despite these difficulties, I have always felt a responsibility to explain complex ideas, and the trade-offs and uncertainties we face. 

‘I know that some of my explanations have missed the mark. But the media has a responsibility too.’

Dr Lowe’s seven-year is ending on September 17, with his deputy Michele Bullock replacing him in 11 days’ time.