The Albanese government has launched a campaign to make Philip Lowe do the wrong thing – but the bullies won’t win

Thank God for Reserve Bank governor Philip Lowe standing up to the Albanese government’s outrageous bullying and doing what he thinks is right.

The media says he’s our “most loathed banker”. But thank God Philip Lowe just promised he won’t give in to the Albanese government’s outrageous bullying.

“It’s not affecting our decision-making, let me assure you,” the Reserve Bank governor said on Wednesday, defiant before a senate committee.

I’ve never seen past governments do what this one’s doing to Lowe to stop him raising interest rates yet again, even though inflation is still at a dangerous 7.8 per cent.

Lowe is meant to be independent of government for a good reason – so he does what he thinks right to keep interest rates low. So he doesn’t, unlike politicians, just do what’s popular.

That’s why politicians normally won’t say whether interest rates should go up or down. That’s the Reserve Bank’s job.

The Albanese government has bullied Philip Lowe. Picture: Gary Ramage

But the Albanese government has instead launched an apparent campaign to make Lowe do the wrong thing, and done it when he’s at his weakest – near the end of his seven-year term, and hoping the government extends it.

Assistant Treasurer Stephen Jones, backed by Industry Minister Ed Husic, declared: “We’re hoping that we don’t see further interest rate increases.”

Former Labor leader Bill Shorten complained that mortgage holders were “the meat in the sandwich” after nine rate rises so far.

The Sydney Morning Herald reported another four Labor MPs wanted Lowe dumped, and Treasurer Jim Chalmers refused to endorse him.

Multiple Labor MPs want Reserve Bank Governor Philip Lowe dumped. Picture: Gary Ramage

But Lowe’s appearance at senate estimates was smack to the bullies.

Sure, he seemed frustrated at being targeted so personally: “I find sometimes that it’s all sheeted down to me and that’s a bit unfair because it’s the board, there are nine of us … who make these decisions.”

But his critics seemed forgetful: “People really forgot about how corrosive inflation was and how it eroded your savings. How it made income inequality worse, how it really hurt the poor …

“I know it’s really hard for people to pay more on their mortgages, but it will be harder still if inflation gets too high and stays too high.”

Yes, Lowe originally cut interest rates too hard, too long. Yes, he disastrously assured borrowers rates would stay that low until next year. But no, he’s not now raising rates too much. Not with inflation this high.

Let Labor threaten Lowe and scapegoat him for their own failure to cut spending and power prices.

But he’s said the bullies won’t win. The price of surrender is too high.