In his final address as Governor to the Anika Foundation, Dr. Philip Lowe reflected on the economic challenges he encountered during his seven-year term and highlighted the importance of robust policy frameworks in navigating uncertainty.  

Dr. Lowe emphasised the need for a strong nominal anchor in the form of a medium-term inflation target for monetary policy and a credible fiscal framework for fiscal policy. He also stressed the significance of aligning monetary and fiscal policies to achieve better economic outcomes.  

The Governor also discussed the importance of productivity growth for Australia’s future prosperity and the link between wages, inflation, and productivity growth. He also touched upon the relationship between monetary policy, credit growth, and asset prices, highlighting the limitations of monetary policy and the need for a multi-faceted approach to address issues like the high cost of housing in Australia.  

Dr. Lowe shared personal anecdotes, including a health scare on the day of his appointment announcement, and lessons learned during his 43 years at the RBA. He also addressed criticisms related to forward guidance on interest rates during the pandemic and discussed the challenges of communicating in the social media age.  

The Governor concluded his remarks by expressing gratitude for the support he received during his tenure and wished the incoming Governor, Michele Bullock, all the best.