How RBA chiefs Philip Lowe and Guy Debelle mind their own money

Their decisions affect the whole economy, but what do the RBA’s top bankers do with their own coin? New documents reveal all.

Governor of the Reserve Bank of Australia Philip Lowe (right) and deputy governor Guy Debelle. Picture: AAP Image

Australians have come to know Reserve Bank Governor Philip Lowe through the interest rate announcements on the first Tuesday of each month, but new disclosures have revealed a different side to the RBA boss.

Access to the exclusive Qantas Chairman’s Lounge, living a stone’s throw from Royal Randwick Racecourse and dabbling in the sharemarket – with a personal holding in Telstra – provide a glimpse to how Dr Lowe spends life outside the first Tuesday of the month.

But discovering the “declarations of material personal interest” of the man charged with overseeing Australia’s monetary policy - and who was paid $1.09m for doing so last year - almost did not happen.

Freedom of information officers from the RBA knocked back The Australian’s application on the grounds it would “involve the unreasonable disclosure of personal information”.

But on Wednesday the central bank had a change of heart, publishing the declarations - a move it said would “promote openness and accountability”.

The publication of two documents, both dated April 30, reveal Dr Lowe and deputy Guy Debelle share common interests. Both live in Randwick in Sydney’s eastern suburbs and both enjoy complimentary memberships of the Qantas Chairman’s Lounge.

The release of the documents comes a day after the RBA governor talked up the state of the economy, forecasting a strong recovery from the COVID-19 doldrums. At the same time, Dr Lowe locked in the RBA’S target of maintaining rates at record low levels until 2024.

With plenty of liquidity about and poor returns on term deposits, the sharemarket has been a big beneficiary, with the economic recovery sending stocks soaring from the pits of despair in April last year.

And Dr Lowe’s declaration reveals he has exposure to stocks - albeit via exchange traded index funds from various issuers, as well as managed funds from Vanguard and Colonial First State. Index funds and Vanguard funds are often used by investors to gain exposure to a basket of stocks and assets.

But his declaration shows he personally holds a shareholding in Telstra.

Dr Lowe, who has headed the RBA since 2016, was paid $933,409 in base salary last year, with another $120,219 in superannuation contributions.

Dr Lowe’s superannuation is held by Sunsuper, the Queensland based industry super fund, in a similar vein as his counterpart the deputy governor, who was paid $708,671 last year, receiving an additional $90,165 in superannuation contributions.

The release of the declarations of interest details nothing in the way of gifts to the RBA governor or his deputy.

But the bank’s register of gifts shows Dr Lowe recently enjoyed a dinner following the launch of a Lowy Institute Paper written by John Edwards in late March. Last year Dr Lowe again was treated to a dinner at the Lowy Institute.

Dr Lowe is also revealed to hold several savings accounts with Commonwealth Bank, as well as UBank, and ING - both which offer competitive savings rates. But he discloses no active mortgage on his property. That’s on top of the bank governor’s credit card with CBA.

Dr Debelle meanwhile - whose declaration reveals no shareholding of any kind nor investments in any managed funds - is a customer of Westpac, where he holds his mortgage, credit card, and savings account.

The documents show neither of the two public servants is a property investor, nor hold any other significant assets.

Australian mortgage holders have reaped the benefits in the last year of rock bottom interest fed by a torrent of cheap money from the RBA. Borrowers have seen average fixed rates for owner occupier borrowers fall from 4.36 per cent in late 2019 to as low as 3.26 per cent.

Originally published as How RBA chiefs Philip Lowe and Guy Debelle mind their own money