Philip Lowe was right to take the unpopular decision in June to increase the Reserve Bank’s cash rate from 3.85 per cent to 4.1 per cent to tackle the cost-of-living squeeze on ordinary Australians, just as Michele Bullock was right to increase it again to 4.35 per cent on Tuesday. Back in June, however, Jim Chalmers called Dr Lowe’s rate rise “hard to cop” and declined to extend his term as governor.

After being feted by the prime minister and treasurer in Parliament House in July, Dr Lowe’s successor now warns that underlying inflation has proved to be even more persistent, house prices have continued to rise, and the labour market is still tight.