It kooks like Phillip Lowe will be increasing rates until the month he leaves the RBA, he appears to be a natural born loser.In 2023 an independent review of the RBA was conducted. The report concluded that Philip Lowe was responsible for trading losses of between $30bioAUD and $58bioAUD as a result of the RBA's bond purchase program and term funding facility. These losses left the Reserve Bank technically insolvent and as a result Lowe and the Federal Treasurer agreed to halt all dividends to Australian tax payers until the Reserve Bank returned to positive equity, estimated to take until at least 2032.
The report also found that the processes for the initial assessment and ongoing monitoring of the interest rate risks associated with the bond purchase program and term funding facility "were incomplete" and "did not pay sufficient attention to the risks posed to the RBA's earnings" and did not contain the necessary scenario analysis for increases in interest rates.
Despite losing up to $58bio, which is to be covered by taxpayers, Philip Lowe is still employed as the Governor of the Reserve Bank and is seeking another seven year term in September 2023. Philip Lowe's loss is ten times bigger than the next biggest loss in Australian corporate history which was HIH at an estimated $5.3bioAUD.
