Reserve Bank of Australia governor Philip Lowe has apologised to Australians who may regret taking out a home loan off the back of guidance that interest rates would remain unchanged until 2024.
Appearing before a Senate estimates hearing on Monday morning, Lowe said it was “regrettable” that the RBA did not make it clear the commentary was conditional on the state of the economy.
“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.
“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 on our part.”
Lowe has come under fire for saying as late as November last year that the bank was likely to hold the cash rate steady at a record low rates.