Tuesday 2 August 2022 12:30 AM Reserve Bank boss and entire staff ordered to resign after 'misleading' public ... trends now
A top economist has demanded Philip Lowe and his entire staff to resign over false promises interest rates would remain low, when the Reserve Bank is about to hike the cash rate for the fourth time.
Warren Hogan, managing director of EQ Economics and chief economic adviser to Judo Bank, accused the Reserve Bank of Australia Governor of misleading Australians by saying interest rates would be kept low.
Mr Hogan said the Reserve Bank had made some 'pretty bad errors' in the last 18 months and would make matters worse by hiking interest rates once again.
'They threw the kitchen sink at it and they lost their risk management skills,' the economist told the Daily Telegraph.
'It's unforgivable. I think they should resign - the whole board.'
A top economist has ordered the Reserve Bank boss Philip Lowe (pictured) and his entire board to quit as they prepare to hike interest rates for the fourth time
Mr Hogan said Mr Lowe had sealed his fate when he made a public commitment that the cash rate would 'very likely' remain at 0.1 per cent until 2024.
The economist said Australians had been encouraged to take out loans and buy homes with the confidence that interest rates would remain stable.
However, Treasurer Jim Chalmers has vowed to standing by Mr Lowe, despite a likely rise in the official cash rate.
Economists are tipping another 50 basis point hike to interest rates when the central bank board meets on Tuesday, which would take the cash rate to 1.85 per cent.
Dr Chalmers said the governor had his full support: 'My job is not to take pot shots at the governor,' he told Nine News on Tuesday.
Treasurer Jim Chalmers (pictured on Tuesday) has vowed to standing by Ms Lowe, despite a likely rise in the official cash rate
Economists are tipping another 50 basis point hike to interest rates when the central bank board meets on Tuesday, which would take the cash rate to 1.85 per cent
'My job is to do what we can in the government to alleviate some of these inflationary pressures that we are seeing in the economy and that is what our focus is.'
Dr Chalmers said a rise in rates would be challenging for many.
'This is about a difficult day for Australians with a mortgage, another difficult day,' he said.
'People are expecting his outcome
