Reserve Bank governor Philip Lowe has apologised to Australians who may regret taking out a home loan off the back of advice interest rates would remain unchanged until 2024.
Appearing before a senate estimates hearing on Monday morning, Dr Lowe said it was “regrettable” that the RBA did not communicate the “caveats” in the advice clearly enough.
“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 said.
“But at the time, we saw that as the right thing to do. And I think looking back, we would have chosen different language. People did not hear the caveats.
“I thought it was clear … but the community didn’t think it was clear. Well, they thought it was clear we weren’t raising rates until 2024. That’s a failure from our part.”
Dr Lowe’s apology will be cold comfort to the millions of Australians who have experienced an almost 3 percentage point increase to their mortgages since May.
More to come
Story Credit: news.com.au