‘Tone deaf’: RBA governor Michele Bullock says Aussies ‘doing fine’ despite 13 rate rises
The RBA governor has copped a lashing after insisting at an overseas jaunt that Aussies were “doing fine” despite 13 interest rate hikes.
Newly-minted Reserve Bank governor Michelle Bullock has sparked an outcry after insisting at an overseas jaunt Aussies are “doing fine” despite 13 interest rate hikes.
Ms Bullock made the comments at a central bank conference in Hong Kong on Tuesday.
She acknowledged the RBA’s punishing 13 rate hikes had generated considerable “noise” from politicians and the community at large
“But what I’d like to highlight is despite that noise, households and businesses in Australia are actually in a pretty good position,” she said.
“Their balance sheets are pretty good.
“Through the pandemic, they built up large savings buffers, and they’re largely still intact.
“Housing prices are rising again, much to everyone’s surprise, so that’s sort of helping people feel a little bit more wealthy.”
Ms Bullock went on to claim those coming off very low fixed rate mortgages were managing “quite well”.
“And all the indications from the banks, and all we hear from the banks, is these households are doing fine.”
Ms Bullock took home $828,313 in base pay, bonuses, superannuation and other payments as deputy governor before she was promoted to the top job in September, according to The Guardian.
Leading pollster Kos Samaras took to X to declare Ms Bullock’s “tone deafness was off the charts”.
He told news.com.au it was “abundantly clear” the last few interest rate rises were causing serious financial pain for everyday Aussies.
He said while many older Australians are “doing fine” or even prospering, “for many younger families their personal battle with the RBA’s blunt monetary policy is akin to the sort of pain experienced by Australians in the Great Depression”.
“Only this time many get to experience this type of stress while having a job,” he added.
He urged the RBA to be more careful in its communications.
Journalist Brian Wilson reacted to the comments by revealing that another three businesses in his town were closing.
“If @RBAInfo Governor cares to venture out Canberra she might avoid the embarrassment of attributing inflation to haircuts and dentists,” he wrote.
Former South Australian senator Rex Patrick quipped the “office tower she works from is covered in ivory panels” along with a picture of the building.
Everyday Aussies were quick to vent their frustration too.
One person observed “homeowners and renters were being “squeezed until their eyeballs bleed” while the banks really were “doing fine as they reap the windfall profits from RBA rate rises”.
“Sadly, a clear indicator of the continuing disconnect between the RBA and what the average Australian is experiencing,” wrote another.
“Maybe if you’re on a ridiculously exorbitant salary like the RBA Governor you’d be in a great position at home, but I don’t know anyone or have spoken to while doing business that can see they’re in a good position at the moment,” a third wrote.
Ms Bullock was criticised earlier this month for suggesting Australians going for haircuts and dentist visits were to blame for high inflation.
Hinting that further interest rate pain may be on the way to tackle “homegrown” inflation, the central banker said that domestic factors were the dominant driver of the cost-of-living crisis.
Those comments also sparked anger and mockery on social media.
“Breaking … bald people to lead the fight against inflation,” former independent MP Tony Windsor wrote on X.
One user commented, “Just read that the RBA governor is lashing out at people for having dental treatments and haircuts. Damn. Guilty as charged. I go to the dentist every year and had to have an extra minor procedure this year and planning on getting a haircut this week … damn.”
She’s paid a lot of money so she’s one of the people in this country who don’t “feel†the pinch. Let’s face it, if you are pulling in over $300Kpa you are kinda ok, and she’s earning a lot more than that.
— Dean Chill (@DeanChill) November 28, 2023
Another woman said, “This is the most ridiculous nonsense I believe I have ever heard from an ‘economist’. Michele Bullock also wants us to visit the dentist less. I mean Australia can possibly cope with bad hair, but bad teeth! Madness.”
Former governor Philip Lowe also made headlines with a series of “out-of-touch” public statements during the RBA’s crushing series of rate rises, including suggesting Aussies simply work more and spend less.
It was hoped Ms Bullock would be a welcome change from the gaffe-prone Mr Lowe.
An estimated 3.7 million households are currently battling serious levels of food insecurity, not-for-profit Food Bank revealed in its 2023 Hunger Report.
Foodbank’s research shows an extra 383,000 households are grappling with food insecurity than a year ago. More than a third of the population – more than the total number of households in Melbourne and Sydney combine – are having to “compromise their meal choices”, the organisation said.
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