The Reserve Bank of Australia (RBA) Governor Philip Lowe won’t be in the role for much longer. 

Mr Lowe became an unpopular figure in the past year following an unprecedented series of cash rate hikes, driving up the cost of mortgages and putting pressure on many people repaying home loans. 

Let’s cover off the basics to get you up to speed. 

Was Philip Lowe fired?

No.

His seven-year term as RBA governor was due to expire in September, so regardless of what’s been happening, he would have had to re-contest his role anyway. 

Earlier in the year, he indicated he’d be happy to serve for another term.

Here’s what he said when he was asked about the role in April:

“If I was asked to continue, I would,” Mr Lowe said. 

“If I’m not asked to continue I will find another way to contribute to Australian society.”

Who decides the RBA governor?

The federal treasurer appoints both the governor and deputy governor. 

Currently, that’s Jim Chalmers. 

However, it’s not just going to come down to a captain’s call — the ABC understands there will be a cabinet meeting to decide who will take on the role. 

The cabinet is made up of senior figures in the federal government — different to the national cabinet meetings you might remember from the COVID era, which involved all the state and territory leaders. 

Who will be the next governor?

We don’t know yet, however, a few names have been brought up, including:

Of course, there’s been a lot of speculation about this. 

Federal Opposition Leader Peter Dutton isn’t keen on Mr Kennedy or Ms Wilkinson taking up the top job, suggesting they couldn’t be independent because of their established relationships with the Labor government. 

Former RBA governor Bernie Fraser dismissed that suggestion as “silly”, himself having been appointed to the role directly from Treasury.

When will we find out the next RBA governor?

Mr Chalmers will make an announcement after this morning’s cabinet meeting. 

We’re expecting that at 9:40am AEST. 

What will this mean for interest rates?

It’s uncertain for the moment. 

At the last monetary policy meeting, the RBA decided to hold the cash rate but indicated more rises could be on the cards.

In the past year, the RBA has hiked the cash rate from 0.1 per cent to 4.1 per cent, significantly adding to the cost of mortgage repayments for homeowners.

Mr Lowe said the rises were necessary to curb the steep increase in inflation, which peaked at 7.8 per cent. 

The RBA wants to get inflation down to somewhere between 2 and 3 per cent.

The most recent monthly number has inflation at 5.6 per cent, however those monthly figures are only partial readings.

The next complete quarterly consumer price index comes out in a bit under two weeks on July 26 — a week before the next RBA meeting on Tuesday, August 1. 

In November, Mr Lowe apologised for saying the record-low interest rates brought into effect in response to the pandemic wouldn’t rise until 2024. 

How much does the RBA governor get paid?

According to the RBA’s 2022 annual report, Mr Lowe was on a base salary of $890,252 a year, plus $115,171 in super contributions. 

So, roughly $1 million.