Should RBA Governor Lowe Resign?

Trying2SaveABuck on 04/05/2022 - 12:29
Last edited 04/05/2022 - 13:08

Less then a year ago Dr Lowe publicly announced interest rises wouldn't rise any earlier then 2024- this clearly would of influenced a number of peoples decisions to take out loans - This statement at the time might of seemed reasonable and lured some borrowers into a false sense of security.

https://www.afr.com/policy/economy/lowe-admits-embarrassing-…

My question is this incredibility irresponsible handling of Australias cash rate could have large impacts on a number of Australians.

Now i agree interest rates had to rise based on inflation but this comments about the cash rate are far more damaging then some people realise

I feel like there needs to be some accountability as Dr Lowe is paid $911,728 pa to be Governor of the RBA i personally think he should be shown the door or forced to walk.

I'd almost argue the lack of criticism on him right now is a bit of a joke his comments could turn out to be incredibility damaging for a number of borrowers.

Full disclosure: I have a home loan but im fixed for the rate rise doesnt affect me in anyway right now but im curious to know what people think

Update: looks like most people are 'alright' with it personally i'd like to see him replaced but i find it interesting people find it interesting as he is a very high paid 'public' servant that people dont expect better.

Poll Options

  • 155
    Lowe should be sacked or resign
  • 495
    Lowe should stay
  • 21
    Unsure
Financial

Comments

    • Trying2SaveABuck on 04/05/2022 - 14:52
      +1

      And people believed him?

      i personally didn't but i know some people who did

      but fair point

  • brad1-8tsi on 04/05/2022 - 14:49
    +1

    I think if you aren't factoring in a 5% rise in current mortgage rates then you are doing yourself a disservice.

    The unfortunate thing is that in the past, lenders (and borrowers) factored in incremental wage rises over the life of the loan. The first couple of years of payments were always difficult but then you got a wage increase, re-grade or promotion and it got easier.
    These days those wage increases are non-existent for many and even the guarantee of a full weeks work has gone.

    • netjock on 04/05/2022 - 15:39
      +1

      Many people now draw a line from what they were making as a graduate to 30 - 35 and the line just keeps on going up therefore a mid life trade up on 20% deposit is definitely in play.

  • netjock on 04/05/2022 - 15:37

    A recruiter asked me once whether I would work for the department of education including preparing answers for the minister during parliamentary question time. I confirmed the pay. It wasn't that great. So no go. My head isn't going to roll without compensation for danger it involves.

    Call the $900k danger money because I am sure he gets letters with suspicious baby powder in it, threats amongst other horrible things that people do to others.

    Reason why politicians want to become PM on crap pay is because it is more lucrative afterwards. Don't for a second believe they are doing it out of the kindness of their heart. Apparently the PM of the UK is on GBP200k and can't afford to pay for his legitimate child and many illegitimate children, he only managed to survive as an MP by writing a column in the newspaper.

    • Crow K on 04/05/2022 - 15:59
      +2

      "PM on crap pay"

      Fifth highest paid in the world, according to a fact check: "A 2019 analysis by USA Today of the best-paid world leaders put Mr Morrison’s salary at the fifth-highest in the world. However three of the four leaders ahead of him in the list are not parliamentarians but head their government’s executive branches."
      https://www.aap.com.au/factcheck/is-scott-morrison-the-highe…

      • netjock on 04/05/2022 - 16:00
        +1

        5th on the table of crap pay.

        I see IT contractors and Project Managers on $1500 a day.

        • Crow K on 04/05/2022 - 16:10

          TIL that netjock thinks $1,500 a day is "crap pay"

          • netjock on 04/05/2022 - 16:16
            +2

            @Crow K: For the responsibility and grief you get. Of course.

            If you get paid $1500 a day would you like to manager a project team of 100 people OR a whole country.

            • Crow K on 04/05/2022 - 16:17

              @netjock: According to the ABS, average weekly earnings are roughly $1,900 ( https://www.abs.gov.au/statistics/labour/earnings-and-workin… ) making a daily average of $380… so if you're not earning more than 4 times the Aussie average, you're on crap pay.

              Whirlpool is that way ->

              • netjock on 04/05/2022 - 16:21
                +2

                @Crow K: You're just salty.

                If you are average then you probably aspire to PM wages but do you want the responsibility and crap that goes with it. Given how dirty politicians, depends on price you put on your soul.

                I know a lot of senior managers on PM salaries but they aren't salty about the PM's salary. Think most of them say thanks they don't have to deal with so much rubbish.

                I am not a fan of a lot of politicians, for that money I wouldn't take the job. I'm not on that kind of money but still won't take the money to do a job like that.

                • Crow K on 04/05/2022 - 16:22

                  @netjock: I'm so salty I went and skewed the national data to show you how ridiculous your "crap pay" viewpoint is, that's how salty I am.

                  • netjock on 04/05/2022 - 16:24

                    @Crow K: I think you don't get it.

                    It isn't an average job so you can't say the pay is great.

                    That is like saying a prostitute is on really good pay compared to the national average but is it an average job?

                    • Crow K on 04/05/2022 - 16:34
                      +1

                      @netjock: It's different from the average job, but is it "Time to get paid in the top 3% of Australians" difficult?

                      It's $200K more than surgeon taxable income (which is wages MINUS deductions) ( https://www.abc.net.au/news/2021-06-08/tax-stats-ato-million… ) - average surgeon taxable income is $394K, ScoMo gets $594K. Unless surgeons are running up $200K of surgery deductions, this is a giant blip. (I'm aware I'm watering down the strength of my argument because we're moving from discussing wages to discussing taxable income by profession, but I'm the only one bringing any data to this party anyway so, eh).

                      Recalibrate, son. Earning more than people that spent a decade in medical school and operate at the top of their profession is not 'politcs of envy salt'.

                      • netjock on 04/05/2022 - 20:25
                        +1

                        @Crow K:

                        Recalibrate, son

                        You don't seem to calibrate properly.

                        A surgeon vs prime minister vs a prostitute doesn't even compare. Denomination of payment (AUD) is the only thing in common.

                        A high class escort makes probably as much as a surgeon. Would you say they need to take a pay cut? If you think the PM is overpaid and incompetent then obviously you need to pay a lot more to put someone in that is competent because only incompetent people want the job.

                        You have serious calibration issues and I have been trying to tell you that.

                        CEO of Commonwealth Bank makes about $5m a year. If it was that job or governor of the reserve bank then obviously Commonwealth Bank, lot less hassle when raising home loan rates because some guy making $900k is willing to be lightning rod of public fury.

                        • Crow K on 05/05/2022 - 08:57
                          +1

                          @netjock: The fact you so quickly brought up and dropped in 'prostitution', which has nothing to do with a regular recurring wage - counts against you, not me. You might as well have dropped 'lottery winners' in there as well while saying "note how these people have different earning potential as well".

                          Not only do you think earning $594K a year, which would be the top 1% of Australia is 'crap pay' for the Prime Minister (who has what skillset exactly, remind me), that means you think he should actually be paid more as well.

                          You've shown up with anecodotal evidence and personal bias (I know a contractor earning X, I would never do that job for that money), and all I've managed to drag along is ABS average wages and ATO income data. You don't get to try to pass me a reality check with your "mate I reckon" barbecue talk.

                          I get that it's a unique role. That doesn't mean it equate to it being one of the top paid roles in the country/world. They're not connected.

                          You're absolutely entitled to your opinion ("I think he should earn more" is just as valid as "I love the taste of boot polish, more licks please").,
                          "The PM should be paid more" is a weird hill to die on, that's all.

                          • netjock on 05/05/2022 - 10:28

                            @Crow K: Nah. You just have an axe to grind.

                            It is your personal opinion. If you take my opinion a surgeon should be paid zero because I never used one in 40+ years. I don't dispute surgeon pay. I assume it is the going rate.

                            The fact you so quickly brought up and dropped in 'prostitution', which has nothing to do with a regular recurring wage - counts against you, not me.

                            You are on a different planet. Lottery winners didn't have to work for it did they. You have an odd theory of work.

                            all I've managed to drag along is ABS average wages and ATO income data

                            Fudged data. If all tradies are on $1k a day then how come ATO has builders making $100k. They take half the year off? No. It is because they are paying they family and putting their private expenses through it. Average wages include the PM's salary and Lowe's salary so in practice a majority of people are earning significantly less.

                            I get that it's a unique role

                            But you are not getting it. That is the point.

                            You're assuming going through a decade of university entitles you to make $400k as a surgeon. How do you explain the high school graduate making $70k as FIFO vs an accountant who did 3 years of university and then 3 years of post grade qualifications (CPA/CA etc) and making $50k at a small suburban firm as an employee.

                            You are blinded by statistics.

                            • Crow K on 05/05/2022 - 10:52

                              @netjock: Rahahaha, "s-stop referring to ABS/ATO data, you're being blinded by statistics man! Wait until you hear my hot takes on whether one of the top paid positions in politics is "Crap pay" or not. Sure, I'm not backing it up with anything but it's a more reasonable basis than (shudder) data".

                              "If you take my opinion a surgeon should be paid zero because I never used one in 40+ years". I don't know if you're being wilfully obtuse, but this isn't exactly the sort of thing you should saying while trying to convince me you have a reasonable take on what suitable pay is. It's outright lunacy.

                              I'll say one thing about your terrible take - it's also a pretty unique position.

                              • netjock on 05/05/2022 - 11:14
                                +1

                                @Crow K:

                                I don't know if you're being wilfully obtuse, but this isn't exactly the sort of thing you should saying while trying to convince me you have a reasonable take on what suitable pay is

                                It is a take on you thinking what reasonable pay is. Also by putting quotation marks around a sentence actually means you are quoting me and I don't think I wrote those words. It goes to show your comprehension of everyday sentences. I have no doubt you are getting things very wrong.

                                You make it sound like it is a country of underpaid farmers and construction workers. Everyone else is overpaid to lead them. It is true if you believe it given the massive tax incentives (deductions) for farmers and construction industry.

                                I also suggest you vote on 21st May if you don't like the person being paid to do the job. It is one of the few jobs in this country where they let people regardless of qualification make a decision that affects others without need for interviews and background checks.

                                • Crow K on 05/05/2022 - 11:25

                                  @netjock: You don't think you wrote those words? Scroll up.

                                  "Nah. You just have an axe to grind.

                                  It is your personal opinion. If you take my opinion a surgeon should be paid zero because I never used one in 40+ years".

                                  Imagine forgetting what you wrote an hour back and accusing someone else of having comprehension issues.
                                  You have no doubt I am getting things very wrong? Eyes, brain, scrollbar - try them out. Especially the middle one.

                                  • netjock on 05/05/2022 - 11:55

                                    @Crow K:

                                    You don't think you wrote those words? Scroll up.

                                    Referring to the below

                                    Rahahaha, "s-stop referring to ABS/ATO data, you're being blinded by statistics man! Wait until you hear my hot takes on whether one of the top paid positions in politics is "Crap pay" or not. Sure, I'm not backing it up with anything but it's a more reasonable basis than (shudder) data".

                                    Imagine forgetting what you wrote an hour back and accusing someone else of having comprehension issues.

                                    But you do. The only words that I did write was "Crap pay" the rest is your hyperbolic drivel

                                    Also it isn't a "hot take", because that is what you believe your take is in order to take someone else down.

                                    I don't have an envy problem. It seems like this country has a problem with everyone else making more money than they do.

                                    I wouldn't use the word "man" because I have no idea of your gender but you just use it to make yourself look cool.

                                    • Crow K on 05/05/2022 - 11:58

                                      @netjock: Public awareness campaign:

                                      If a loved one you know is showing the level of disconnect netjock is showing right now, you need to ask them three questions IMMEDIATELY

                                      • What day of the week is it?
                                      • Can you smell burnt toast?
                                      • Can you smile for me? (check to see both corners of their mouth raise up)

                                      Failure of any one of these is a 000 call - they might be going through a stroke (basically half their brain could be dying right in front of you).

                                      As with all intervention, as early as possible is best - if in doubt, call.

                                      • netjock on 05/05/2022 - 12:00

                                        @Crow K: In a public conversation and turning to personal attacks just means you are running out of anything else reasonable to say. I must have truly scrapped the bottom of your barrel of knowledge.

                                        • Crow K on 05/05/2022 - 12:06

                                          @netjock: I heard sudoku or doing a crossword every day can help.

                                          thoughts and prayers, man

                        • [Deactivated] on 05/05/2022 - 10:23

                          @netjock: You look at the package, you 2 dimensional boomer
                          Office staff and driver for life
                          Pension for life
                          Free travel for life
                          Contacts for trade and business deals
                          High level business opportunities
                          Diplomatic access and welcome in foreign countries
                          And, if you think for a moment insider trading opportunities or kickbacks into foreign accounts for directing funds or influencing the legislation or grant processes you are a naive fool.
                          The egoic iimprimatur of being PM
                          Do you think Malcolm Turnbull needed the money when he already has half a billion plus?
                          Or that it is reasonable for Turnbull to put his half billion in a Cayman Island Trust whilst PM and claim 'no conflict of interest?
                          Or Angus Young and his Cayman Island company involved in Water Trading, I think Barnaby is involved in that somewhere too but not interested in following the sewer. Here if you want to expand your knowledge beyond what Koshie and Karl had to say this morning https://archiearchive.wordpress.com/2019/04/

                          • netjock on 05/05/2022 - 10:33

                            @[Deactivated]:

                            you 2 dimensional boomer

                            Well there goes your argument. You know only people with no convincing arguments start off with personal insults.

                            All of these benefits in kind. Is it cold hard cash that you can pay your mortgage off?

                            If I was CEO of CBA and did it for 10 years I'd gross $50m take out 50% tax still have $25m. Can pay for all of the above right? Still have contacts / business deals / high level business opportunities. With $25m vs $5m being PM I don't have to go begging people for opportunities.

                            And, if you think for a moment insider trading opportunities or kickbacks into foreign accounts for directing funds or influencing the legislation or grant processes you are a naive fool.

                            If you really want to sell your soul then yeah why not? I guess a few people want to live an honest life.

                            Or that it is reasonable for Turnbull to put his half billion in a Cayman Island Trust whilst PM and claim 'no conflict of interest?

                            If you made that money before becoming PM then wouldn't you want to protect it? You are just mixed up.

                            • [Deactivated] on 05/05/2022 - 14:38
                              -2

                              @netjock:

                              Block-quote If I was CEO of CBA
                              Block-quote A recruiter asked me once whether I would work for the department of education including preparing answers for the minister during parliamentary question time

                              Your not the CEO of CBA, delusions of self importance, your a back room bureaucrat at best.

                              But then again maybe your the dark triad pragmatist, and I am delusional for expecting from our politicians and public servants honour and duty to the national interest for the betterment of Australians and future generations.

                              The fish rots from the head down and your acceptance of this speaks for your internal compass.

                              As for referencing 'the banks' they are essentially well paid theives. Research the question "where does money come from" and see the truth.

                              I have done it for you - here it is the Bank of England - and now we know who really choses the PM and for that matter RBA policy.

                              “Commercial [i.e. high-street] banks create money, in the form of bank deposits, by making new loans. When a bank makes a loan, for example to someone taking out a mortgage to buy a house, it does not typically do so by giving them thousands of pounds worth of banknotes. Instead, it credits their bank account with a bank deposit of the size of the mortgage. At that moment, new money is created. For this reason, some economists have referred to bank deposits as ‘fountain pen money’, created at the stroke of bankers’ pens when they approve loans.(1)” [our addition in brackets] (Bank of England, Money Creation in the Modern Economy) Bank Of England

  • ALesha77 on 04/05/2022 - 15:38
    +3

    If you put a question like that - I firmly think that Lowe should stay.

    If I want to see a new RBA governor then it should be a more hawkish one who should have raised rates on par with New Zealand and UK. Lowe is a political laggard and simple aussies will pay dearly for that (literally) for years to come. Stagflation is a nothing compared to a few hundreds over-levered over-borrowed wipe-outs and you should thankful to Lowe at least for that.

    Also what he said was that "don't see any need for a move in the rates until 2024" which is very different to how you frame it. At the time, he did not see that (even though everyone else in the macro-world did). Also he said that "prudent standard of lending should be maintained" throwing a stone in APRA's direction but those good-for-nothing regulators did not even flinch.

    Finally, I think the next hike will be even larger without too much advertising it. Some think that advertising a rate policy well ahead is more inflationary and defeats the purpose. There is a lot to unpack there so vote for reply if you want more speculations about the next move in rates.

    • netjock on 04/05/2022 - 15:40
      +1

      a few hundreds over-levered over-borrowed wipe-outs

      You under estimate the number of lying country men.

      • ALesha77 on 04/05/2022 - 16:03

        Liars' loans take this into another dimension and without proper stats one could speculate endlessly but officially we have:
        - mortgage holders are somewhat 30+ months ahead on their mortgage payments (don't quote me on the exact months number but it was solid)
        - everyone is awashed with cash thanks to government stimulus (there were stats about bank cash holdings - google if you want proof)
        - unemployment meandering around 4% being the lowest in decades (thanks to QE, TFF, zero-rates, stimulus, grants and other gasoline on the inflation bonfire)

        So, how bad could it be?

        • netjock on 04/05/2022 - 16:18

          mortgage holders are somewhat 30+ months ahead on their mortgage payments

          On average so it would still be 30 if someone has 0 and another 60 months ahead

          everyone is awashed with cash thanks to government stimulus

          I have no idea what you are on about because our house didn't get any, must be people working and lying about it to get the stimulous. Bank cash holdings are again average numbers

          unemployment meandering around 4% being the lowest in decades

          We know that is a lie. Only 4% because a lot of people have given up and working 1hr a week is consider employed.

          • ALesha77 on 07/05/2022 - 21:36

            @netjock: This is why all these numbers are called economic indicators.
            On average or median which means that you god nada but 2 of your neighbors drive Porsche.
            Still, these numbers explain a lot "on average" or "in whole" and that is what we argue about here.

  • shaybisc on 04/05/2022 - 15:45
    +3

    His 2024 comment seemed crazy at the time as most economic commentators have been saying repeatedly ever since. And you would be crazy if you took out a mega home loan finely calibrated to that comment.

  • Almost Banned on 04/05/2022 - 15:48
    +3

    Do you also support sacking meteorologists who get the weather forecast wrong?

    • shaybisc on 04/05/2022 - 15:52
      -2

      The meteorologist doesn't control the weather like the Governor of the RBA controls the cash rate. Meteorologists don't forecast bright and sunny when the storm clouds are moving in and you can hear the approaching thunder.

      • Almost Banned on 04/05/2022 - 16:18
        +2

        The cash rate, like the weather forecast, changes in response to new information…
        Or at least they should.

  • USER DC on 04/05/2022 - 15:50
    +1

    I'd rather like high interest rates, that would kinda equalize the society in the long term, and make the gap between rich and poor smaller,

    No increased grocery prices, Houses will once again be affordable again, perhaps may be a lot of first home buyers will be looking to buy properties Outright, instead of taking loans.

    Ofcourse borrowing will get expensive, and hence, lot of rich people (or higher middle end income class) may suffer losses.

    Cost of living will come in control, after some recession.

    Wages may go up, finding job might be difficult but people's work will start to get more appreciated and economy will be boosted by technological advancements instead of FREE MONEY PRINTING.

    Saving will finally give a decent return that people will not be looking into investment risks and end up loosing money, or worrying about loosing purchasing power of $$.

    • netjock on 04/05/2022 - 16:22
      +1

      I'd rather like high interest rates, that would kinda equalize the society in the long term, and make the gap between rich and poor smaller

      You checked with the 1980s.

      • USER DC on 04/05/2022 - 16:28

        sounds like good to me, may be not that much 20% rate, but hey I wont mind that either, if 20% would be the case, I wont need to be loosing money in wrong investment mistakes at all, instead always increase money by savings.

        1980's was stupid high inflation period (because of various factors, removal of gold standard was a big one). I think, anyway I wasn't even born that time, so cannot say much about that.

        • postform on 05/05/2022 - 10:50

          The rich get richer mate..

          When asset prices decrease, who you think will be able to afford to borrow or even buy cheap assets?

          Rich people, because they have lots of cash! Sure their asset values on paper won't look good but if you ain't selling then you ain't realising. And as you buy more assets on the cheap, and as assets rise back up. The rich get richer. The poor fall behind. (Matthews principle)

          In saying that a lot of "rich" people will definitely become poor after this rate hike period, as they have failed to weight risk and reward.

  • rektrading on 04/05/2022 - 16:03
    -5

    It 👀 like there are more 😭 👶 in the real estate market that than the 😭 🪙 market.

    People should take cash rate hikes as an opportunity to buy more hard assets.

    • postform on 05/05/2022 - 10:53

      Not sure if you serious. 😅

      • rektrading on 05/05/2022 - 11:12

        I'm a firm believer that people like Larry Fink and Co have their fingers in many 🥧 all around the 🌎.

        They want to own all the prime assets at a discount. The best way to do this is to nuke the markets, scare the 💩 out of retail and ⛏️ up assets dozens at a time.

        Bill Gates is one of the biggest farm landowners in the US. He used to sell software and has now for many switched to subscriptions. He will do to land as he did to Microsoft.

        Bill Gates and Larry Fink are friends and are on the path with Co to buy, own and rent to 99% of the population.

        • postform on 05/05/2022 - 13:10

          I agree but we're talking about the average household who has no cash or cashflow due to leverage home loan.

          • rektrading on 05/05/2022 - 13:26
            -1

            @postform: Get a second job. Cut back on brand names. Stop eating out. Hold fewer parties, birthdays, BBQs, etc. No more $2 charging cables and Eneloop.

            I went cool turkey in March 2020 and stopped spending on anything other than food, bills, fuel, essential clothing and hard assets. All my fiat money that isn't used to pay bills goes to buying more hard assets.

            “It’s not how much money you make but how much money you keep, how hard it works for you, and how many generations you have it for.” R.K

            • postform on 05/05/2022 - 14:52
              +1

              @rektrading: Again I agree with you there but not everyone's circumstances are like yours. And mine too. I myself have done similar things cutting down and increase saving buffers.

  • brendanm on 04/05/2022 - 17:20
    +6

    The buck stops with the people taking out the loan. Doesn't matter what old mate said, no one has a gun at their heads forcing them to buy a house they can't afford.

    • netjock on 04/05/2022 - 20:28
      +1

      You forgot the gun of peer pressure. Feeling the heat at BBQs.

      • brendanm on 04/05/2022 - 21:04
        +2

        No, I didn't forget it. Peer pressure is a lame excuse.

        • netjock on 04/05/2022 - 22:54
          +2

          Lots of lame people in this country making excuses.

          • brendanm on 05/05/2022 - 06:38
            +2

            @netjock: There sure are, victim complex is alive and well.

    • saltypete on 05/05/2022 - 09:57

      And lots of wise first home buyers who can deal with the trivialty that peer pressure is, and are waiting.
      Why should their taxes subsidise the weak and the foolish?

  • this is us on 04/05/2022 - 21:12
    +1

    You should learn that governments play politics and can't be trusted…
    He was not giving financial advice. No one is forced to do anything… It's been ridiculously easy to get mortgage(s) in Australia… I know people with ok income and three mortgages… What would you expect?

    • netjock on 04/05/2022 - 22:56
      +1

      What would you expect?

      People who do what they say.

      I knew this was what was going to happen so I fixed mine in tranches. 1.84% and 2%. Late last year for between 3 - 5 years.

  • mdavant on 05/05/2022 - 06:35
    +1

    The problem isn't Russia

    It is our ridiculous money printing and handing 750 per week to people who rorted jobkeeper.

    Just a joke, that will need to be fixed by interest rate rises and tax increases.

    It felt good for the dependent at the time but now the pain will be felt for decades.

    It is so funny that whenever i point out that welfare makes people more dependent and the obscenely wealthy even moreso the dependent can't figure out how that happens.

    Well, enjoy the next decade or so, because the money has dried up.

    • MessyG on 05/05/2022 - 21:01

      That's not true. Welfare makes some people more dependent. I grew up in a single parent home, my Mum got child support from the government because my Dad didn't pay it. I got Austudy when I went to uni, and I had to go on the dole while I was looking for work after my first degree. I did the mandatory jobseeker training and everyone in that training program were hard up, hard working people trying to exit welfare. My Mum made damn sure I had a good education so I'd never be in her position and I'm a doctor now. I find this attitude toward welfare really quite insulting to the many people on it who understand it is temporary. And deeply insulting to those who will never exit it due to illness and injury. Of course there is a handful of people who dont want to work who live miserable lives smoking bongs but they are not the majority by any stretch. Welfare doesn't entrench extreme wealth, government and the extremely wealthy do that.

      • mdavant on 05/05/2022 - 21:09
        -1

        Thanks for assuming that I meant that for everyone.

        Of course I do not, nobody does.

        But I am also not naive.

        The middle class are dependent on middle class welfare and it trickles up.

        As you get older and understand how the system works, I am sure you will work this out too.

  • Longtimescroller on 05/05/2022 - 07:06
    +1

    For me the real problem was that APRA was too slow to act in restricting how much borrowers can extend themselves in a time where interest rates dropped to dramatic lows.

    Raising interest rates should actually reduce the wealth gap by reducing exorbitant asset prices whilst giving self funded retires at least some return on their savings.

    • Boogerman on 05/05/2022 - 07:22
      +1

      Self funded retirees should be fully asset means tested

  • Boogerman on 05/05/2022 - 07:20

    I think you & society should sack yourselves for how you allow politicians & RBA board members to own investment properties
    The solution is right there yet 80%+ of you keep voting to keep the same
    Suffer, suffer, suffer - reap what you sow

    • Trying2SaveABuck on 05/05/2022 - 07:30
      +1

      tell me which party doesnt have MPs with financial vested interests you generally dont become an MP unless you are fairly wealthy it isnt like you can run a campaign without decent backing or wealth behind you

      the issues with democracy and the way it is in Australia, UK, USA etc is political 'parties' take 'donations' from lobbyists and private equity etc so there is a 'IOU' feeling if they get into office.

      i agree with your sentiment that proper reform probably wont happen in the property market due to 'conflict of interest' but there is literally no way changing that.

      but your stab about 'voting' makes no sense the two majors are stacked with property investors MPs, as is the Greens, UAP and One nation….

      • Boogerman on 05/05/2022 - 07:33
        -1

        And on cue, you reply exactly as expected - "its all too hard, so I guess we have to maintain the status quo."
        You have no excuse with your first or second voting preference going to Labor Or Liberal, in the house of reps or senate

        • Trying2SaveABuck on 05/05/2022 - 07:45

          ….not exactly name a party that doesnt have property investors in there MP ranks…..

          property investors are not 'evil' most people invest in property to 'simply' get a head. Perhaps you need to look at your own personal bias.

          i agree somewhat there is a conflict of interest though im not against the idea of MPs not being allowed to invest in certain areas/business whilst in office however i couldnt see property being on that list. Perhaps a limit of 3 properties ie family home investment holiday house could be put in place. However what would stop them from buying it under a spouse etc

          i probably got more issue with MPs giving government land/contracts to mates and family

          • Boogerman on 05/05/2022 - 07:47
            -2

            @Trying2SaveABuck: Whinge, whinge, whinge & keep the status quo.
            Reap what you sow.

            • rektrading on 05/05/2022 - 07:55
              -1

              @Boogerman: What is Australia sowing?

              The hard assets will be transferred from the weak 🙌 to the 💪 🙌.

              Multimillionaires, billionaires, MNC real estate tycoons and hedge funds will scoop up the prime rental properties for cheap.

              This will bring 🇦🇺 back to square one but this time with more centralized ownership.

            • Trying2SaveABuck on 05/05/2022 - 12:00

              @Boogerman: @boogerman im not Whinge im literally saying this bloke should be axed…..

              also status quo doesn't bother me - 60% of Australians own property in some way or shape i dare say the majority like the status quo.

              although i agree there is a conflict of interest we live in a democracy and the fact is (if you admit it or dont) most people actually dont want property to go down.

      • prodrome on 05/05/2022 - 09:26

        You have no idea what you're talking about.

      • MessyG on 05/05/2022 - 21:02
        -1

        Yeah but only one party has been in power and at the wheel for nearly a decade…

    • postform on 05/05/2022 - 10:54
      +1

      They keep voting for them cause "better economic managers" 😂😂

      Ohhh look they are going to give first home buyers money !! Oh look … Why aren't it becoming more affordable 🤣.

      Maybe Australians need some education in economics 101. It'll do them good.. only thing they know about numbers is negative gearing 😂🤣

  • rektrading on 05/05/2022 - 07:41
    +1

    Only +0.25%? This is shocking. 🙀

    The RBA should've front-ended this and slapped a +0.50% to give the market a squeeze.

    • Trying2SaveABuck on 05/05/2022 - 07:46
      +3

      i actually agree with you but that is a different argument

    • Boogerman on 05/05/2022 - 08:06
      +2

      Shane Oliver suggested prior that it should have been a 0.4% rate rise. I was of the same mind.
      Most economists predicted only 0.15%
      No matter - we've now been told interest rates will keep rising well into 2024 (which, based on RBA's woeful historical forecasting accuracy means 2025)

      • rektrading on 05/05/2022 - 08:56
        -1

        I don't know who Shane Oliver is. I also don't listen to economists.

        The only thing I 👀 at is the charts and they show that the retail is 😱 as 💩. This is bad for them but 👍 good for 🐳 like Larry Fink.

        Be more like Larry and less like 🐏.

        • Boogerman on 05/05/2022 - 09:27
          +1

          "I also don't listen to economists."
          Speaks volumes.

          Who you voting for, One Neuron or Palmer & His Five Daughters?

          • rektrading on 05/05/2022 - 09:47
            -3

            @Boogerman: I don't vote.

            To be more exact. I'm a single-issue voter and won't vote for anyone unless they have the policy I want.

      • Trying2SaveABuck on 05/05/2022 - 09:05

        No matter - we've now been told interest rates will keep rising well into 2024

        I agree they should rise to at very least pre-pandemic levels sooner rather then later due to high inflation i dont see it happening so smoothly.

        The moment the media starts pumping out stories some 28 y.o leveraged to his to his neck about to lose his 15 investment properties the RBA will fear public backlash - like they have in the past.

        I want Lowe gone not because of what he said but because i truly think he is a s**t governor

        We should of be at a cash rate of at least 1% by now instead he has sat on his hands

        • Boogerman on 05/05/2022 - 14:36
          +2

          If you want Lowe gone then vote for a party or independent that will hold the government to account & its appointees. A federal ICAC is a start, as it will change the mentality, culture & honesty of government

          • Trying2SaveABuck on 05/05/2022 - 14:43
            -1

            @Boogerman: I've said this before and ill say it again i support an ICAC however i dont necessarily support Albo - he refused the investigation in to Wong and Co and he has pretty much turned a 'blind eye' to IBACs current investigation in the Vic ALP ie Andrews and Co.

            Until Albo holds his own party to account i wont be supporting him personally i would argue both Majors are rubbish but (and i cant believe im saying this) i think i prefer the LNP this time around i do no want Wong in charge of foreign affairs and im not a big fan of Chalmbers as treasurer when i hear hear him walk about wages i just think all your going to do is increase 'cost of living' when the very next sentence he talks about 'reducing' cost of living. - you simply cant have higher wages and reduced cost of living you got to pick one.

            • as for independents it is likely the way i will go this election but certainly not a progressive (teal) independent.

            As for Scomo we all know he and a number of LNP members are crooks at least he doesnt hide it anymore essentially straight out happy to let corruption continue (which i personally dont agree with) but i respect that he isnt trying to BS me like Albo is

            If i was Albo i would of thrown Wong and Co out if the investigation found ANY wrong doing and called out Andrews to step down if the final IBAC report also found him of corruption (which it looks like it has) but he has done jack all so for me…. he is prob worse then Scumo although i'd say Albo genuinely seems like a 'nicer' bloke i care more about the ability to lead then anything else.

            • Boogerman on 05/05/2022 - 14:51
              +3

              @Trying2SaveABuck: Wow. So Scomo lied about setting up an ICAC & has said of late it’s a kangaroo court & yet you still support him/them.
              Good. Suck up your higher loan interest repayments. Hypocrite.

              • Trying2SaveABuck on 05/05/2022 - 15:36

                @Boogerman:

                Suck up your higher loan interest repayments. Hypocrite.

                my loans fixed….

                So Scomo lied about setting up an ICAC & has said of late it’s a kangaroo court & yet you still support him/them.

                He did i agree he is a a BS artists. But unless Albo can prove his comments about it being a waste of time are true then im inclided to side with Scomo

                IBAC is the state version of an ICAC - if Albo cannot or will not back its findings then personally Scomo is right it is a waste of time.

                You cant be anti corruption and at the same time support corruption boss.

                Im not the hypocrite but your party leader Albo is…

                difference btw u and me is i can think 4 myself

                • Boogerman on 05/05/2022 - 15:47
                  +2

                  @Trying2SaveABuck: LOL. I don’t vote Labor, but I would definitely preference them above this corrupt mob. Heck, they evenly blatantly admit they’re corrupt!
                  And yes you will be paying higher interest payments once your fixed period is over. And for many years. Enjoy your status quo.

                  (EDIT) And right on cue, serendipitously, here is evidence of the ugliness of the conservative side of politics:
                  State Liberal MP Bernie Finn says women should not be allowed to have abortions, even when sexually assaulted
                  https://www.abc.net.au/news/2022-05-05/victorian-liberal-ber…

                  • Curley-Meteor on 06/05/2022 - 20:21
                    +2

                    @Boogerman: The purpose of the OP's post is to make raising the interest rates the fault of Lowe, rather than Scomo's and LNP. It's exactly what right wing media is doing now.

                    Just look at his/her posts in the last few weeks, and you'll get some ideas.

                    I have my doubts he/she even has a loan.

  • singingwolf on 05/05/2022 - 08:14

    RBA is about to undo 1 trillion in investment in the economy. He is mad.

    The inflation we have is not due to a hot economy. It's due to external factors that interest rates cannot fix.

    If anything, with interest going up, inflation will rise further as rents go up, businesses pass on higher cost of their loans etc.

    • rektrading on 05/05/2022 - 08:50

      RBA is about to undo 1 trillion in investment in the economy. He is mad.

      Dropping a few nukes is the 👍 way to shop for assets.

    • postform on 05/05/2022 - 10:57

      How do you begin to undo 1 trillion dollars??

      It's not like he can sell it. Is it just that the bonds coming to maturity won't be reinvested? Or are their other vehicles he can use to start reducing the balance?

    • netjock on 05/05/2022 - 11:16

      RBA is about to undo 1 trillion in investment in the economy. He is mad.

      QE isn't an investment. It is just freeing up cash by buying up assets (and giving banks cash to lend).

  • DarkOz on 05/05/2022 - 08:36
    +3

    Over committing because of FOMO on something you can't afford. That's the problem. Don't blame someone else.

    I actually blame Lowe for looking after his buddies by raising only 0.25%. Should have been 0.5%.

    • Jason Genova on 05/05/2022 - 08:52

      dont worry, those who bought the top will just need to wait another decade

  • 2esc on 05/05/2022 - 08:48
    +1

    I don't think he can control world conflicts. The war in Ukraine is having a impact worldwide and it's going to get worse before it gets better. I have family and friends overseas and so far Australia is doing alright. Can we do better here? Yes we can but compared to other countries I'm happy to live here.

    • netjock on 05/05/2022 - 11:18

      You can tell a country of moaners. 0.25%. People waste more money buying stuff they don't need on OzB just because it is cheap.

  • HelpMeiCantSee on 05/05/2022 - 08:50
    +3

    The only thing that’s wrong is the interest rate hasn’t been raised high enough or fast enough.

  • mikekiwimike on 05/05/2022 - 08:51
    +1

    If the RBA boss can tell the future then they would not have been in that job, there are much better ways to make money with this super power. It is ridiculous to assume that they should be fired for making a statement that was later found to be incorrect. It is likely that he knew this to not be sustainable but keeping the market calm is more important than making a statement to say that rates will increase, when, again he has no idea as he can not tell the future.

    Funny that the global markets did not expect this inflation jump, UK and USA believed that "printing money" (Quantitive easing) would lead to a sustainable future of growth without runaway inflation….. it is funny how not everyone can foretell the future right? more likely though is that it is not politically savvy to tell the truth when it will affect people and your vote tally and of course they knew the outcome.

    Why not target your ire towards the major banks, most of which pocketed several of the rate drops that the RBA gave to the market instead of passing them through to citizens. Of course when the rate moved upwards then it becomes a guarantee that banks will increase their rates. Understandable when "profits" are being squeezed, but the banks profits were not being squeezed and they all have had bumper years - this is called "give and take", go through a royal commission for illegal behaviour, get fined, pay out to affected people (no worries we still made money!), bump up rates for mortgage holders to refill the coffers lost due to being fined for illegal behaviour. Look for the next scheme to make more money than good ol honest banking will earn (Crypto, NFTs) and wait for the next royal commission to slap them on the wrists.

    Oh, that is just Take and Take, but we just sit back and let it happen, now that is what the RBA and government should be working to achieve, making it more damaging for banks to run their money grabbing schemes in circumstances where it is later found to have affected people and business, or dead people which is even worse!

    • Jason Genova on 05/05/2022 - 08:58

      a lot of people bought the top based on his comments. both sides are to blame

      • netjock on 05/05/2022 - 11:20

        Outsourced thinking and decision making is the best invention for the intellectually lazy.

        Even if they kept rates 0.1% for 4 years, most people still need to do the math whether they can get so far ahead in 4 years to not be in trouble when rates are rising.

        I blame it on math. If it was easier then everyone would get it.

  • tamckinnon on 05/05/2022 - 09:11
    +1

    What hogwash.. The cash rate from the RBA is only a guide for banks and lenders. Anyway, Where is your own personal accountability?

    Debt was cheap between banks during COVID up until 2024, cash was offered wholesale at 0.1% / 0.01% via short term bonds.

  • Boogerman on 05/05/2022 - 09:26
    +1

    https://www.abc.net.au/news/2022-05-05/housing-affordability…

    To make housing affordable, property prices need to fall, hurting many Australians with big debts

    • netjock on 05/05/2022 - 11:24

      If I make $4k a month after tax. Bank assesses I can afford $2k a month mortgage. Interest rates go up. I can still only afford $2k so house prices must come down. Before rate rise $2k, after rate rise $2k. Just because house prices fall doesn't mean I magically got more money.

      Rates going up is not a bad thing but it just depends on what people are thinking it means. In theory if you are lucky to sell at the top and have all cash and lucky to pick bottom and buy with cash then you pocket the difference. A lot of people are not in that position.

      • Boogerman on 05/05/2022 - 14:38

        There are more ways than just interest rates rising for house prices to fall

  • tonka on 05/05/2022 - 09:26
    +1

    Dr Lowe understands that his statements are also are a tool in is toolbox. That making a statement like that can have a similar effect to cutting interest rates. So, he couldn't cut interest rates any further so he talked it up instead.

  • Vote for Pedro on 05/05/2022 - 09:34
    +1

    Why? RBA responds to economic conditions laid out by global events and the Government of the day.

    So in effect your question should be whether the government should resign.

  • saltypete on 05/05/2022 - 10:06

    I didn't think that prescience was a job requirement.
    Or that failure to properly examine the entrails of a goat was an issue.
    If you made dumb financial decisions remember that in the school of life the tuition fees are also instructive - provided you are self aware enough to accept personal responsibility.

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