David Koch

David Koch explodes over interest rate rises | WATCH

PHOTO: Sunrise host David Koch

  • Sunrise host David Koch has unleashed on the Reserve Bank governor over rates
  • Philip Lowe repeatedly promised last year to leave cash rate on hold until 2024 
  • RBA cash rate has surged by 1.25 percentage points since May – most since 1994 

Sunrise host David Koch has unleashed on the Reserve Bank of Australia after its governor Philip Lowe repeatedly promised last year to leave rates on hold until 2024.

‘Late last year, November December, the Reserve Bank, Philip Lowe, was telling Aussies to go out and borrow, go out and borrow as much as you like, on the understanding. I’m not going to put up official interest rates ’til 2024,’ Koch said.

‘A couple of months later, they started putting up rates.

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‘Was that advice to average Australians negligent?

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‘Were they derelict in their duty to lead average Australians up the garden path to get themselves in debt?’

Treasurer Jim Chalmers defended Dr Lowe.

‘I wouldn’t describe it that way, Kochie,’ he told Sunrise.

‘Governor Phil Lowe has talked about that at some length about that guidance that he gave and how he considers the economic conditions to have changed faster than the bank anticipated.’

Banking giant ANZ is now predicting the RBA will raise rates by 0.5 of a percentage point in August, September, October and November.

This would see the cash rate more than double from a three-year high of 1.35 per cent to a 10-year high of 3.35 per cent.

The case against Philip Lowe

The Reserve Bank governor last year repeatedly promised to keep the cash rate on hold at a record-low of 0.1 per cent until 2024 ‘at the earliest’

Philip Lowe has now complained about inflation only being released quarterly

But on July 28 last year, the Australian Bureau of Statistics revealed annual inflation in the June quarter of 2021 had climbed by 3.8 per cent

This was well above RBA’s 2 to 3 per cent target and more than triple the 1.1 per cent annual pace during March quarter of 2021

Yet on August 3, 2021, Dr Lowe and the Reserve Bank released a statement saying the cash rate would not increase until 2024 – despite the evidence of rapidly rising inflation

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‘The board will not increase the cash rate until actual inflation is sustainably within the 2 to 3 per cent target range,’ it said

‘The central scenario for the economy is that this condition will not be met before 2024’

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