Today’s announcement by the Reserve Bank of Australia to retain the cash rate at 4.1% marks the final monthly meeting with Philip Lowe as RBA governor.
The end of Lowe’s seven-year term follows the RBA’s announcement of a shake-up of its board in July to ensure greater accountability, as recommended by the findings of an independent review commissioned by the Albanese government.
The elevation of Michele Bullock as RBA governor from the 18th of September provides an opportunity for the RBA to prioritise its outlined objective of full employment.
While today’s announcement of a hold on the cash rate is welcomed, the ACTU warns that the full impact of the last 12 months of interest rate hikes with working people being pushed off the ‘mortgage cliff’ and the knock-on effects to renters, with an estimated 880,000 fixed-rate loans switching to higher variable rates in 2023, is yet to be felt.
Quotes attributable to ACTU President Michele O’Neil:
“For too long, there has been a real divide between the decision-making process of the RBA and the lived experiences of working people. Change in the RBA leadership and board is an opportunity to bridge that disconnect.
A secure job that provides for your family can be life changing. The RBA has a chance to help make this a reality for working people across Australia by focusing on its objective of full employment.
Working families across our suburbs and regions have felt the pain of the RBA’s decisions. A change in direction and prioritisation of full employment and on the impact that excessive corporate profits have on inflation can restore public faith in the RBA as an institution.”
ENDS
Media Contact: Cameron Warasta 0447 159 467
