‘Lacked empathy’: Treasurer Jim Chalmers’ secret clash with former RBA boss Philip Lowe about interest rates
An explosive report has lifted the lid on a fiery clash between Treasurer Jim Chalmers and then-RBA boss Phil Lowe.
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Treasurer Jim Chalmers clashed with RBA governor Philip Lowe over interest rates according to a new report, telling him he “lacked empathy” about the impact on battlers.
In a new profile published today in The Australian Financial Review, there are revelations that Mr Chalmers met with the then governor of the Reserve Bank of Australia, Philip Lowe, in Sydney.
It claims he was up-front about his “growing displeasure with the central bank boss”, accusing the RBA of ignoring the pain that rate rises were having on regular people including in his own electorate of Logan in Queensland.
The report notes that several months after the exchange, the Albanese Government did not extend Mr Lowe’s term as RBA governor.
“Lowe, the treasurer noted somewhat caustically, had never been there (to Logan), according to a person with knowledge of the exchange and who asked to remain anonymous,’’ the report says.
“The RBA governor was told he lacked empathy and that he needed to get outside Sydney’s affluent eastern suburbs where he lived.”
Insiders confirm conversation with RBA governor did occur
News.com.au understands that a conversation did occur and that the Treasurer Jim Chalmers did tell him people were hurting but denies telling him to get out of the eastern suburbs.
“(It) wasn’t an inappropriate conversation at all,’’ a government source said.
Labor sources familiar with the discussions insist the exchanges were “respectful” but that he did point out the impact of interest rate rises on families.
They also denied that the Treasurer had a tense relationship with the current RBA governor Michele Bullock, describing the relationship as entirely respectful.
They said the Treasurer and the RBA governor talk all the time, as anyone would expect.
The RBA is independent from the government and sets interest rates based on the latest economic data. The Treasurer has repeatedly denied pressuring the RBA or putting pressure on them to stop hiking rates.
“I’m not going to make any sort of commentary which can be confused with giving free advice to the independent Reserve Bank, or making predictions about the decision that they will take when they meet on the [18th] of February,’’ the Treasurer said in the lead up to the recent rate cut.
“I respect the independence of the Reserve Bank too much to try and make predictions or to give them free advice, or to try and colour in for them the decision that they will make independently and announce towards the middle of February.”
Jim Chalmers “cold, controlled anger”
Government sources took issue with some matters in the AFR, including claims that the Treasurer ever argued in 2022 to drop the tax cuts entirely as “a complete lie” given that he simply argued they be reshaped to deliver more relief to low and middle income earners.
The report also incorrectly identifies the Treasurer’s high school as St Laurence College, a Catholic Boys School in Brisbane. His parliamentary records state that he attended Clairvaux Mackillop School.
The AFR report, by journalist John Kehoe, also claims that like his idol Paul Keating, Dr Chalmers can be abrasive when he is unimpressed.
“While he is not one for yelling, he lashes out with a “controlled, cold anger”, in the words of one person who has witnessed the behaviour,’’ the report states.
“A business person who has had private meetings with Chalmers says that is ‘almost the perfect description’. He can be charming; warm on one occasion and then cold as ice at other times; passive-aggressive and prone to freezing people out, even if only temporarily.
“Chalmers is also, according to more than a few of his colleagues, one of Labor’s best assets. Ambitious but collegiate; willing to dig in and help resolve problems; and someone who is genuine in his interactions.
“Fellow MPs describe him as one of the hardest-working people in politics; someone who sends messages at all hours. ‘He thinks non-stop and doesn’t seem to sleep much,’ says Finance Minister Katy Gallagher.”
Peter Dutton claims PM’s leadership is “over”
Speaking on the Today Show, Liberal leader Peter Dutton suggested the Prime Minister’s leadership was “over” and that the Treasurer was one of the aspirants after the election.
“The leadership race is on,’’ he said. “Where’s Richard (Marles)? I mean, Richard is banned from going on the Today show. Tony Burke is out there doing citizenship ceremonies, trying to win over his colleagues. The leadership race is on. Anthony Albanese’s leadership is over.”
Dutton grilled on decision to buy shares before bailout
Mr Dutton was also pressed by host Sarah Abo on his decision to buy bank shares during the global financial crisis.
“Let’s get to those 2009 bank shares that you scooped up just before the Rudd Government’s bailout,” Abo said, quoting the AFR report that claimed “shadow ministers at the time heard whispers of the deal”.
“Were you among those in the know?,’’ she asked.
“No. Sarah, again, I mean, if the Prime Minister wants to make that claim, he should make it himself,’’ he said.
“Who are they? I mean, they’re not quite in the article. And I’ve been honest and transparent in every transaction I’ve done.
“If I was doing some sort of dodgy share deal, I wouldn’t put it up in lights on my parliamentary register. I’ve acted with integrity as a police officer since I’ve been in politics.”
Originally published as ‘Lacked empathy’: Treasurer Jim Chalmers’ secret clash with former RBA boss Philip Lowe about interest rates
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