The Australian government will announce the position of the Reserve Bank governor within weeks, which may bring a fresh pair of eyes to the monetary authorities’ struggle against inflation.
This comes as the incumbent governor Philip Lowe will finish his seven-year term in September.
Despite helping the Australian economy navigate the COVID-19 pandemic, Lowe has been subject to heavy criticism for giving unclear messages indicating that interest rates would remain low until 2024, which turned out to be untrue.
Since May 2022, the Reserve Bank of Australia (RBA) has lifted the official cash rate 12 times to contain soaring inflation, taking the rate from the historic low of 0.1 percent to the current 4.1 percent and causing many Australians to experience mortgage stress….