Dr Philip Lowe: Interest rates alone can’t conquer Australia’s cost of living crisis

Australia is obsessed with interest rates like no other country, and it is distracting us from tackling more pressing challenges, like productivity, that would have a greater impact on the cost of living crisis facing many Australians.

That's the view of former Reserve Bank Governor Dr. Philip Lowe, who spent 43 years working at the RBA, including 7 years in the top job from 2016 to 2023.

Dr Lowe believes the current policy settings from the RBA are suitably restrictive with risks remaining and the battle to tame inflation hasn't been won. Lowering interest rates may ease some of the pain households are feeling, but it isn't the silver bullet many perceive it to be.

In this episode of Success and More Interesting Stuff, Dr Lowe discusses the lessons through his RBA journey and shares his thoughts on some of the pressing economic issues of 2025.