Philip Lowe

Philip Lowe
Born	(1961-10-04) October 4, 1961 Wagga Wagga, New South Wales, Australia
Occupation	Economist
Years active	1979–2023
Known for	Governor of the Reserve Bank of Australia (2016–2023)

Philip Lowe (born 4 October 1961) is an Australian economist who served as the Governor of the Reserve Bank of Australia from September 2016 until September 2023. Prior to this, he held the position of Deputy Governor under Glenn Stevens from February 2012 to September 2016.

Early life and education

Lowe was born in Wagga Wagga, New South Wales, as the oldest among five siblings. He attended St Michael's and Trinity Senior High Schools before relocating to Sydney. At age 17, he began working at the RBA in a clerical role while simultaneously pursuing a commerce degree at the University of New South Wales through evening classes. He graduated in 1985 with first-class honours and was awarded the University Medal. Subsequently, Lowe earned his PhD at the Massachusetts Institute of Technology in 1994, where he was supervised by Paul Krugman.

Career

Starting his career at the Reserve Bank at 18, Lowe advanced through various leadership roles including head of the Economic Research Department in 1997, followed by leadership of the Financial Stability Department (1999–2000), Domestic Markets Department (2002–2003), and Economic Analysis Department (2003–2004). Between 2000 and 2002, he was based at the Bank for International Settlements in Switzerland as head of its Financial Institutions and Infrastructure Division. His appointments included Assistant Governor (Financial System) in 2004, Assistant Governor (Economic) in 2009, and Deputy Governor in 2012. In May 2016, Treasurer Scott Morrison announced Lowe’s appointment as RBA Governor commencing September that year. According to the Reserve Bank’s 2019 Annual Report, his base remuneration was $911,728 with superannuation contributions amounting to $116,962.

An independent review conducted in 2023 revealed that under Lowe’s leadership, the RBA incurred trading losses estimated between AU$30 billion and AU$58 billion due to its bond purchase program and term funding facility, rendering the bank technically insolvent. As a result, Lowe and the Federal Treasurer agreed to halt dividend payments to taxpayers until positive equity is re-established, projected by 2032. The review also noted deficiencies in risk management practices related to interest rate exposure and inadequate scenario analysis.

During his tenure, Lowe attracted criticism for several public remarks. In 2021, he predicted that official cash rates would remain unchanged until 2024; however, rate increases began in May 2022, prompting him to issue an apology for this miscalculation. In May 2023, at a Senate Economics Committee hearing, Lowe suggested that housing affordability could improve if more individuals shared accommodation or lived with parents longer, which sparked public controversy. The following month at the Morgan Stanley Australia Summit, after another rate hike, he recommended Australians reduce discretionary spending and seek additional income sources to cope with rising living costs, drawing similar attention.

In March 2023 it was disclosed that in 1997 Lowe had obtained a subsidized home loan for his Randwick property when appointed head of Economic Research. The loan was provided at half price with an interest rate fixed at half the standard variable rate under a scheme previously available to Commonwealth Bank customers. The RBA confirmed that Lowe fully repaid all loans and that his financial disclosures were accurate. His governorship concluded on 17 September 2023.

Personal life

Lowe is married and has three children. He met his spouse, Jocelyn Parker, an employee of the Australian Prudential Regulation Authority, during his tenure at the RBA.