RBA boss Philip Lowe to face major parliamentary grilling

The embattled RBA boss will face yet another grilling this week as public fury over skyrocketing interest rates reaches a fever pitch.

Reserve Bank boss Philip Lowe will face a barrage of questioning this week as parliamentarians turn up the heat on the under siege governor.

Dr Lowe is listed to appear before a senate estimates hearing on Wednesday, followed by a House committee on Friday.

He expected to be probed over the central bank’s plans to deliver further interest rate rises and the impact of nine consecutive hikes since May.

NAB economist Taylor Nugent said the bank’s “hawkish” statement of monetary policy, released last week, was sure to be on the agenda.

“With heightened press coverage of Lowe’s recent approach to communication that is sure to be a focus of questioning,” he said.

“Though we will be looking for comments around the RBA is balancing the risks of subpar growth/recession versus getting inflation back to target and what the bar is to pausing the hike cycle.”

Dr Lowe is set to face questioning over the nine straight interest rate rises. Picture: NCA NewsWire / Gary Ramage

Dr Lowe has come under fire for saying as late as November 2021 that the bank was likely to hold the cash rate steady at record low rates.

Since May last year, it has rapidly raised rates from 0.1 per cent to 3.35 per cent in a bid to curb skyrocketing inflation.

He later apologised to Australians who may now regret taking out a home loan off the back of the RBA’s guidance.

One of the governor’s most vocal critics, Senator Nick McKim, said Dr Lowe should not be able to skirt accountability just because the bank is independent of government.

“Dr Lowe will need to explain why it is that he is punishing renters and mortgage holders for an inflation problem that the RBA itself has confirmed is primarily a result of supply side issues,” the Greens treasury spokesperson told NCA NewsWire.

“At every step of the way, his decisions have smashed renters and mortgage holders, worsening economic inequality and boosting the profit margins of big banks and the wealth of the already wealthy.”

The under siege governor is also likely to be grilled over reports he gave a private briefing to big banks at a lunch hosted by investment bank Barrenjoey last week.

Government Services Minister Bill Shorten stressed that while he understood people’s “frustration” with Dr Lowe, he did not believe there was anything “untoward” about the briefing.

Dr Lowe is also facing criticism for briefing bankers last week. Picture: NCA NewsWire / Gary Ramage

Former RBA board member John Edwards said the meeting was common practice and questioned the “personal element” of the attacks on Dr Lowe.

“There’s certainly a more personal element (to the criticism) I think this time than before,” he told ABC Radio.

“Paradoxically, it started when, as a criticism that prior to the Covid pandemic … the RBA kept rates too high.”

On Sunday, Treasurer Jim Chalmers repeatedly ducked questions about Dr Lowe’s future when his term expires in September.

A report from the independent panel tasked with reviewing the central bank’s performance is set to hand back its report by March 31.

Originally published as RBA boss Philip Lowe to face major parliamentary grilling