Dec 6, 20231 min read

Former Reserve Bank of Australia Boss Philip Lowe Provided Loan at Halved Rate

In March of 2023 it was revealed that former-Reserve Bank of Australia Governor, Philip Lowe, was provided a half-price loan, helping him to purchase a five bedroom home in Sydney’s eastern suburbs in 1997. This resulted in Mr. Lowe’s interest rate being locked at half the standard variable rate paid to Commonwealth Bank customers at the time.

Former-Governor of the Reserve Bank of Australia, Philip Lowe, at the 2017 Crawford Forum faded against the entrance signage to the Reserve Bank of Australia building. The text "Philip Lowe" is foregrounded.

Mr. Lowe was provided a loan of $241,000 from the Reserve Bank at the discounted rate, with a further $151,000 being loaned directly from the Commonwealth Bank. Political Reporter for Sky News, Olivia Caisley, detailed that Mr. Lowe received the subsidy alongside 11 other current and former RBA employees who are “still paying off these legacy loans at this rate which is half what everyone else is paying.”

2GB Host, Ben Fordham, was outraged at the revelation:

“So let’s get this straight, the RBA helps set the home loan rates for the rest of us, but RBA members have access to a special set of rules! Philip Lowe doesn’t share our pain, he’s living on another planet!"

Senator for New South Wales, Hollie Hughes, suggested that the news was “not a good look” for Mr. Lowe while Australians were struggling with mounting interest rate hikes:

“Things have changed, and I don’t think you can necessarily retrospectively change what occurred or what’s happening for people that was part of their employment…But as everyday Australians feeling the pinch more and more… I got notices yesterday of increases to my mortgage repayments, it’s certainly not a good look."

In December of 2023, it was revealed that current Governor of the RBA, Michele Bullock, had taken advantage of the same scheme.