Reserve Bank of Australia Governor Philip Lowe is effectively certified to stay within the job when his time period expires in two months, the federal coalition says.
Dr Lowe, who instigated an rate of interest tightening cycle in May final yr, is broadly anticipated to depart when his time is up in September.
But senior Liberal Jane Hume mentioned he must be reappointed.
“We’re in the middle of a cost-of-living crisis right now,” the senator instructed Nine’s Today present on Thursday.
“Consistency is very much the key to managing the economy.
“He is definitely effectively certified to remain within the place.”
Senator Hume, who is chair of the Senate select committee on the cost of living, said Dr Lowe had been unfairly demonised by the Labor government for doing his job by lifting interest rates to bring down high inflation.
“Like the federal government have pointed to excessive charges and mentioned ‘see, that is his fault’,” she mentioned.
“Poor outdated Philip Lowe is doing his job.”
Senator Hume mentioned “his job is to maintain the inflation in that band” of two to three per cent across the course of the economic cycle.
Inflation is currently running at about six per cent.
Speculation continues to mount about who the government could select to replace Dr Lowe.
Potential candidates so far include Treasury Secretary Stephen Kennedy, Finance Department Secretary Jenny Wilkinson, RBA Deputy Governor Michele Bullock and high-ranking former RBA officials David Gruen and Guy Debelle.
Treasurer Jim Chalmers is expected to announce the decision on whether to continue Dr Lowe’s tenure or replace him by the end of this month.
Dr Lowe has weathered criticism about the central bank’s hardline rate hiking cycle, which is hurting households with mortgages already battling the rising cost of living.
He’s also been attacked for telling Australians in 2021 that there would be no rate hikes until “at the very least 2024”.
The RBA has raised its cash rate 12 times since May 2022, with pauses in April and this month.
The money charge at the moment sits at 4.1 per cent.
Source: www.perthnow.com.au
