‘Quit’: RBA boss under pressure over fifth consecutive rate hike

Philip Lowe is facing calls to resign after he broke a major promise to Australian homeowners.

Philip Lowe is facing multiple calls to resign after he broke a major promise to Australian homeowners.

On Tuesday, governor Philip Lowe handed down the fifth consecutive rate hike, lifting the cash rate another 0.5 per cent 2.35 per cent.

The decision has sparked fresh calls for the government to sack Philip Lowe from the role, given he initially told Australians rates wouldn’t go up until 2024.

RBA Governor Philip Lowe is under pressure over a promise he made to not rise rates until 2024. Picture: NCA NewsWire / Jeremy Piper

“That is a massive stuff up that‘s going to have really significant financial impacts on the lives of millions of Australians,” Greens treasury spokesman Nick McKim told Nine.

“He got it badly wrong … On that basis alone, Dr Lowe should go.”

Australia's central bank has now raised interest rates for five months in a row in its most aggressive rate rises since 1994.

It has added hundreds to mortgage holders repayments but Dr Lowe insisted the central bank was “committed to doing what is necessary” to bring inflation back to the bank’s 2-3 per cent target.

Greens senator Nick McKim has declared Dr Lowe must go. Source: Supplied

The RBA governor has previously said he expects inflation to tip 8 per cent later this year.

Explaining the rate rise to his followers on TikTok, comedian Luke McGregor questioned Dr Lowe’s claim households had a large enough savings buffer to weather the storm.

“This to me just feels really out of touch with what people are going through,” he said.

“A lot of people don’t have large financial buffers. A lot of people are going to be adversely impacted by their mortgages going up. A lot of people aren’t necessarily getting a massive pay rise right now.

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“It’s the people who are already doing it tough that tend to spend on essentials and not much else that are going to be hurting the most from this.

“So, Philip Lowe … quit it.”

Nationals senator Matt Canavan agreed with the comedian and his Greens colleague, in a move that left Today host Ally Langdon “shocked”.

Ally Langdon is shocked the Greens and Matt Canavan are on a unity ticket.

Matt Canavan says the RBA governor broke a promise.

“The Reserve Bank failed. There is no doubt about that. I think this RBA governor should have gone when he promised to not raise rates until 2024 and now he‘s broken that promise five times,” he said.

“There has to be accountability.”

Treasurer Jim Chalmers has repeatedly dismissed calls to intervene, citing the bank‘s independence from the government.

Originally published as ‘Quit’: RBA boss under pressure over fifth consecutive rate hike