Reserve Bank of Australia Governor Philip Lowe says he has no intention of resigning

The Reserve Bank of Australia Governor has spoken out on the future of his job, after there were calls for his head for wrongly advising that interest rates were unlikely to rise until 2024.

Under-fire Reserve Bank of Australia Governor Philip Lowe says he has no intention of resigning.

Economists, politicians and borrowers have criticised Mr Lowe over the RBA’s forward guidance on interest rates, which proved to be woefully inaccurate.

During 2020 and last year, Mr Lowe repeatedly indicated the cash rate was likely to remain at 0.1 per cent to as far out as 2024.

Instead, the RBA has increased the cash rate by a total of three per cent in the past eight months in an unprecedented series of hikes.

Bank Deputy Governor Michele Bullock has acknowledged that homeowners felt misled by its guidance.

Philip Lowe during a Q&A in Sydney on Wednesday. Picture: NCA NewsWire / Christian Gilles

And Mr Lowe recently apologised to people who listened to what he said and then borrowed a substantial sum or decided against fixing their interest rate.

At a payments conference in Sydney on Wednesday, Mr Lowe was asked by the summit compere whether he would remain in his job until his current term ends in September 2023.

Mr Lowe responded: “I know there have been calls for me to resign. I have no intention of resigning.

“I have an important job to do. It’s a responsible job and I intend to do it.

“We’ve got to get inflation down and that’s my focus and I will keep doing that at least until September next year,” Mr Lowe said.

It will be up to the Albanese government to decide whether to reappoint Mr Lowe beyond that. He has been Governor since 2016.

Inflation in Australia is running at nearly seven per cent, and the RBA expects it to get to eight per cent when the December quarter figures are released by the Australian Bureau of Statistics in late January.

The RBA’s interest rate increases are aimed at slowing the rate of inflation to between two and three per cent.

Economists expect the RBA will continue to raise rates early in 2023. Its board next meets in the first week of February.

Originally published as Reserve Bank of Australia Governor Philip Lowe says he has no intention of resigning