25 January 2023

The Canberra Times [$]: “The RBA governor wants any wage gains to be kept below 4 per cent. In effect, he is asking workers to accept a real pay cut now in the hope that the nation’s inflation problem will resolve reasonably quickly. It is a big ask, particularly coming, as it does, on top of a decade when wages barely kept up with rising living costs (and, in the case of most public servants, actually fell behind).” Australian Financial Review [$]: “Reserve Bank of Australia governor Philip Lowe earned $1 million last year, making him one of the country’s highest paid public servants. The central bank’s annual report shows Dr Lowe’s total remuneration was $1.02 million in the 2017-18 financial year, including $114,617 in superannuation. The RBA governor is paid about double the Prime Minister and above most other senior public servants such as the heads of the Prime Minister’s Department, Treasury and financial regulators.” I have my doubts that this guy, when fulfilling his obligation to make decisions with “the economic prosperity and welfare of the people of Australia” in mind, actually understands what a real wage cut feels like to ordinary people. This is the guy who said interest rates would not increase until 2024, then reneged — and when called on it, said, “I’m sorry that people listened to what we said and then acted on that and now find themselves in a position they don’t want to be in.” He’s a disgrace.