Treasurer Jim Chalmers has shrugged off reports of any tension between himself and outgoing Reserve Bank of Australia Governor Philip Lowe on their upcoming overseas trip to the G20 meeting of global finance ministers next week. The government announced on Friday that it would not renew Lowe’s tenure, after seven years in the role.
Chalmers said Lowe has had an “outstanding seven years” as governor and that there will be no awkwardness when the two travel to India on Sunday to represent the country’s interests.
At a press conference with ABC News on Saturday, Dr Chalmers was asked if there would be any tension between him and Dr Lowe following this week’s announcement, in light of the upcoming trip.
“We have a great working relationship and respect each other’s experience and expertise,” Chalmers said.
“The Reserve Bank’s appointment of Michelle Bullock to succeed Philip Lowe was greatly supported by Philip Lowe himself, which is one of the truly wonderful aspects of this decision.”
Dr Lowe’s term as Governor of the Reserve Bank of Australia, which is the first time in almost three decades that an incumbent governor has not had his tenure extended,has come under significant scrutiny, especially from Australian homeowners who have been subject to twelve consecutive interest rate hikes since May 2022.
This sequence of hikes came after Lowe had promised that interest rates would not increase until at least 2024.