Governor of the Reserve Bank of Australia (RBA), Phil Lowe, has finally apologised for the Bank’s bungled guidance on interest rates, which told Australians that the official cash rate (OCR) would not be lifted “until 2024 at the earliest”.
Appearing before the Senate Economics Legislation Committee in Canberra, Lowe was asked by Greens Treasury spokesman Nick McKim whether he owed Aussies who were “induced” into taking out a mortgage an apology.
Lowe replied “well, I’m certainly sorry if people listen to what we’d said and then acted on … what we said, and now regret what they have done”.
“So that’s regrettable. I’m sorry that that happened. I’m certainly sorry if people listen to what we’d said and then acted on that”, he said.
“I’m sorry that people listened to what we’ve said and acted on that and now find themselves in a position they don’t want to be in”.
“But at the time, we thought it was the right thing to do, and I think looking back we would have chosen different language.”
There will be many more angry borrowers when the avalanche of cheap fixed rate mortgages reset over 2023.
