Philip Lowe named Future Generation Australia chair
The news: Future Generation Australia has appointed Philip Lowe as its new chair, in his first role since stepping down as governor of the Reserve Bank of Australia last September.
The numbers: Lowe served as RBA governor from 2016 until 2023, and had been at the organisation for 43 years. He will replace former NSW Premier Mike Baird at Future Generation, who has been chair since last year, and will remain as an independent director.
Future Generation and its sister company Future General Global have together invested $75.8 million in their social impact partners and other not-for-profits with a focus on children and youth at risk and youth mental health.
The context: Future Generation was founded in 2014, and is Australia's first listed investment company to provide both investment returns for shareholders and investment in Australian not-for-profits.
Lowe will join the company's board of directors as an independent director immediately, and will become its new chair following the company's annual general meeting in May.
What they said: Lowe said: "I think the Future Generation model is brilliant. I've always strived to be associated with organisations that enhance the welfare of Australians, so it's a privilege to work with Future Generation Australia's shareholders and pro bono fund managers to support our most vulnerable youth."
Future Generation CEO Caroline Gurney said: "Phil had a front-row seat for the Hawke-Keating reforms, the Global Financial Crisis and the economic policy response to Covid-19 — he's seen it all. To have him bring that level of experience to the Future Generation Australia board will be invaluable for our shareholders and fund managers."
"It says a lot about Phil that he — like all our directors — has agreed to waive all usual director fees, so that we can maximise our social investment without compromising shareholder returns," she said.
The source: Future Generation Australia media release
Ex-RBA governor Lowe warns market focus on interest rates is 'not healthy'
More news: Incoming Future Generation Australia chair Philip Lowe has warned that the focus on interest rates by financial markets is "not healthy" and said that the Reserve Bank of Australia (RBA) is right to be cautious before raising interest rates.
What they said: When the former RBA governor was asked at a press conference today on his thoughts regarding the financial markets' focus on interest rates he said: "I don't think that's healthy".
"... but have we seen a time like now? Sure. I've seen lots of times like now. I remember right through my time on the RBA board, for 10 years the markets seemed to be hanging on every word we said — sometimes what we didn't even say," he said.
"It's a constant fact of life. It's usually more in Australia than many other countries. I think because we've got all this variable rate debt so both the financial markets and the general community are very attuned to movements in interest rates in Australia."
On his successor Michele Bullock, Lowe said: "I'm not going to offer advice to my successor — that part of my life is behind me".
"But as a general proposition, patience is a virtue and we've got to make sure inflation is actually sustainably back to target and we're not there yet. Let's hope we'll get there soon but we're not there yet," he said.
"The Reserve Bank, in its last commentary, reminded us that there's still two-way risk on interest rates, and it seems possible that they could go up again but they may not. I think it was wise to remind us that there is two-way risk."
Reflecting on his time at the RBA Lowe noted that he was proud of the central bank's actions.
"We were faced with a lot of shocks over my term as governor. We had to make difficult decisions. We didn't always get everything 100% right but we got a lot right, and Australia is in a better place as a result of our actions," he said.
On the prospect of future board roles, Lowe said: "This is my first, and I’m really, really pleased it’s my first. What comes next will remain to be seen … I’m hoping that in time that will allow me to do something else as well".
