"The only letter I'd send Lowe is a termination letter."
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That's how one punter on social media responded to an open letter to Reserve Bank of Australia Governor Philip Lowe splashed across the front of publisher ACM's daily newspapers this week.
Under the cheeky headline "We've had our Phil", the letter filled the front pages of such newspapers as The Canberra Times, Newcastle Herald, Bendigo Advertiser and Tasmania's The Examiner, and appeared across the ACM online network.
Penned "on behalf of hard-working Australians", the provocative letter questioned Dr Lowe's assurances over the past two years that interest rates would not rise until 2024.
The RBA this week lifted its official cash rate for the third time in as many months, with home-owners now feeling the squeeze of fast-rising mortgage repayments on top of higher fuel prices and inflated costs for groceries and other household essentials.
Readers from around the ACM network echoed the sentiments of the letter, which pointedly asked Dr Lowe: "Why - why? - did you tell us that the cash rate would stay at 0.1 per cent until 2024? You spent most of last year telling us that interest rates were unlikely to rise for years. Years! And yet, here we are in 2022 with big rate rises slamming us faster than you can say "pass the lettuce"."
The letter acknowledged the RBA chief's recent comments that he'd made "embarrassing" forecasting mistakes and that "we should have done better".
But it also noted: "It wasn't even an apology when some in this position would have offered their resignation".
The letter attracted support from ACM readers, among social media followers and television commentators, as well as some criticism that the issue had been presented on front pages in such a way.
Gideon Rozner, director of policy at the Institute of Public Affairs, welcomed the scrutiny of Dr Lowe's previous guidance on interest rates, telling Sky News presenter Jenna Clarke on her nightly program The Front Page that the Reserve Bank had let down Australians.
"I don't often agree with the editorial line of The Canberra Times but they are bang on," Mr Rozner said.
"It is high time somebody called out this grossly incompetent boob Philip Lowe who has completely trashed the currency that we are unfortunate enough to be paid in in this country.
"Not only did he leave interest rates far too low, spread cheap money around the economy, printed it like crazy, but he then swore black and blue that there would be no interest rate rise until 2024.
"A lot of people took his word for it and got into mortgages ... that they could barely afford ... and now they are going to be hit with all this pain."
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While the readers and social media followers of some ACM mastheads pointed out that borrowers signing up for huge mortgages coming out of the COVID pandemic had to take personal responsibility for the consequences of their financial decisions, many agreed that the RBA and its leader had legitimate questions to answer.
"He went too late then too hard," one comment posted to the Newcastle Herald said of Dr Lowe.
"He should never have said that he would not raise interest rates until 2024 years before. It was a reckless statement that inflamed the housing market."
WHAT YOU SAID
Mario Stivala: The RBA governor Philip Lowe and his board badly erred when they said it was "very likely" that the cash rate would remain at its historically low level until 2024. It was extremely foolhardy and irresponsible of him and the board to make such a statement when conditions were very volatile and expected to remain so. Unfortunately many individuals made forward financial plans on that basis. Given this it is only fitting Dr Lowe "do the right thing" and voluntarily stand down as RBA governor.
Mokhles Sidden: Everybody knew months ago that interest rates must increase to combat the higher than expected inflation rate. Why didn't the governor of the RBA and his board know? Why didn't they start raising rates gradually six months ago, not suddenly and dramatically now?
Brian Tehan: He went too late then too hard. He should never have said that he would not raise interest rates until 2024 years before. It was a reckless statement that inflamed the housing market.
Elizabeth Durbin: People need to take personal responsibility and if a 0.75% increase in interest rates (off an all time low) has put one in a pickle, then perhaps they need to think about their own decisions.
Sam Stewart: The only letter I'd send Lowe is a termination letter.
Allen Claxton: Maybe take responsibility for your own decisions.
Mari Linn: Didn't Clive promise something about rate rises.
Glendon Godfrey: Tis clear Philip Lowe is way past his "use-by date". Methinks we need an injection of new blood. And the sooner the better.
John R. Baker: Sadly I think your open letter to RBA governor Philip Lowe and your editorial are spot on. Like you, and based on recent interviews I have seen of Philip Lowe, I think he does "seem like a really nice bloke". I am sure there are a lot of people who made decisions on house financing or on mortgage agreements, in terms of going fixed or variable, who are ruing the advice they took from his various statements.
Ratib Zaman: Back in 2020 RBA governor Philip Lowe advised several times "interest rates would not likely rise until 2024". While I understand the governor has used the word "likely", which might give him an out, the message to the nation was: "Go buy your property, you're good until 2024". Members of the public took the governor at his word. At the same time the federal government started injecting cash into the economy, including a build or renovation grant of up to $25,000. This also directed people towards real-estate assets and borrowing.
Mark Chapman: Possibly Phil was trying to put the best spin on Morrison/Frydenberg mismanagement by delaying the announcement as long as possible.
