‘We got things wrong’: Lowe defends his legacy
The RBA governor is due to step down on September 17
2 min
Outgoing Reserve Bank governor Philip Lowe has defended his legacy in his final speech in the top job, insisting he is not to blame for Australia’s soaring home prices.
Dr Lowe’s final few years at the RBA have been characterised by rapidly rising interest rates, made harder for borrowers to swallow by his earlier forecasts that an upward shift would not commence until 2024.
The cash rate began rising in May last year and is now a staggering 4 percent higher following a record run of hikes, the swiftest since the 1980s, but Dr Lowe is unrepentant.
“The issue that has defined my term more than any other is the forward guidance about interest rates that was provided during the pandemic,” he said in an address on Thursday.
“That guidance was widely interpreted as a commitment, rather than a conditional statement, that interest rates would not increase until 2024.”
Red hot inflation offered the RBA no other choice than to begin a dramatic tightening cycle. He repeated his belief that his assurance of rates remaining on hold was never a firm one.
“There has been much criticism since [rates increased], especially by those who borrowed during the pandemic based on our guidance,” he said.
“I ask that people keep in mind the circumstances we faced in 2020. It was a very scary time. There were credible projections that the unemployment rate would rise to 15 percent and that there would be a deep and lasting economic contraction.
“And even well into 2021, large parts of country were still in stringent lockdowns.”
However, Dr Lowe conceded that “with the benefit of hindsight”, he now believes the RBA “did do too much” in terms of implementing emergency measures in the early stages of COVID.
“But hindsight is a wonderful thing,” he said. “We got some things right, but we got other things wrong.”
He rejects the view that keeping rates at a record low of 0.1 per cent for so long is responsible for home prices rising at one of the fastest paces in history during 2021.
“Rather, it is the outcome of the choices we have made as a society – choices about where we live, how we design our cities and zone and regulate urban land, how we invest in and design transport systems, and how we tax land and housing investment.”
One big thing Dr Lowe does not regret is increasing the cash rate in a bid to get a handle on inflation, acknowledging the move as “unpopular” with much of the public but declaring it “the right thing to do”.
He took a final parting shot at the media, which he claimed had inflamed tensions with “clickbait” news about rates, fuelling “vitriol [and] personal attacks”.
Dr Lowe has spent 43 years at the RBA and the past seven as governor. He officially steps away next week, replaced by current deputy governor Michele Bullock.
Economists forecast her first change to rates will be some time in 2024 – and will likely be a reduction, based on current fiscal indicators.
This stylish family home combines a classic palette and finishes with a flexible floorplan
Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.
A Sydney site with a questionable past is reborn as a luxe residential environment ideal for indulging in dining out
2 min
Long-term Sydney residents always had handful of not-so-glamourous nicknames for the building on the corner of Cleveland and Baptist Streets straddling Redfern and Surry Hills, but after a modern rebirth that’s all changed.
Once known as “Murder Mall” or “Methadone Mall”, the 1960s-built Surry Hills Shopping Centre was a magnet for colourful characters and questionable behaviour. Today, however, a $500 million facelift of the site — alongside a slow and steady gentrification of the two neighbouring suburbs — the prime corner property has been transformed into a luxury apartment complex Surry Hills Village by developer Toga Group.
The crowning feature of the 122-apartment project is the three-bedroom penthouse, fully completed and just released to market with a $7.5 million price guide.
Measuring 211sqm of internal space, with a 136sqm terrace complete with landscaping, the penthouse is the brand new brainchild of Surry Hills local Adam Haddow, director of architecture at award-winning firm SJB.
Victoria Judge, senior associate and co-interior design lead at SJB says Surry Hills Village sets a new residential benchmark for the southern end of Surry Hills.
“The residential offering is well-appointed, confident, luxe and bohemian. Smart enough to know what makes good living, and cool enough to hold its own amongst design-centric Surry Hills.”
Allan Vidor, managing director of Toga Group, adds that the penthouse is the quintessential jewel in the crown of Surry Hills Village.
“Bringing together a distinct design that draws on the beauty and vibrancy of Sydney; grand spaces and the finest finishes across a significant footprint, located only a stone’s throw away from the exciting cultural hub of Crown St and Surry Hills.”
Created to maximise views of the city skyline and parkland, the top floor apartment has a practical layout including a wide private lobby leading to the main living room, a sleek kitchen featuring Pietra Verde marble and a concealed butler’s pantry Sub-Zero Wolf appliances, full-height Aspen elm joinery panels hiding storage throughout, flamed Saville stone flooring, a powder room, and two car spaces with a personal EV.
All three bedrooms have large wardrobes and ensuites with bathrooms fittings such as freestanding baths, artisan penny tiles, emerald marble surfaces and brushed-nickel accents.
Additional features of the entertainer’s home include leather-bound joinery doors opening to a full wet bar with Sub-Zero wine fridge and Sub-Zero Wolf barbecue.
The Surry Hills Village precinct will open in stages until autumn next year and once complete, Wunderlich Lane will be home to a collection of 25 restaurants and bars plus wellness and boutique retail. The EVE Hotel Sydney will open later in 2024, offering guests an immersive experience in the precinct’s art, culture, and culinary offerings.
The Surry Hills Village penthouse on Baptist is now finished and ready to move into with marketing through Toga Group and inquiries to 1800 554 556.
This stylish family home combines a classic palette and finishes with a flexible floorplan
Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.
