Reserve Bank governor Philip Lowe yesterday told a crowd at the Armidale City Bowling Club he was "disturbed" by stratospheric CEO pay in Australia.
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The Armidale speech was part of a nationally-televised 'Economic Update' in which he flagged a potential drop to historically low interest rates.
Dr Lowe also said he believed Australia's six-year low unemployment rate of 5.2 per cent remains too high to spur wage growth, which he said should be above 3 per cent.
Last week it was revealed the median bonus for Australia's CEOs was $1.6 million, with just one of the chief executive officers of the ASX100 companies not getting a bonus.
A TAS student asked if that was hurting the average Australian worker, joking he'd been "put up to" asking the Reserve Bank Governor the controversial question.
"You said household consumption is currently quite low. There's quite a high rate of salary at the top end. Does that have a flow-on effect to lower wage increases for bottom line workers?" the student asked.
"Does that limit the household spending for the average Australian worker?"
Governor Lowe, who was introduced to the Armidale Chamber of Commerce dinner as a modest man with a regional background and a regular public transport patron, said he does not ask for incentive payments in his role running Australia's monetary policy.
"I've got a flat salary and I say to my board, look, don't consider performance, because you know, I'm going to work as hard for you and for the people who show up regardless. Actually, I think a lot of people are like that," he said.
"I don't need the incentives, my incentive is to do a good job for the people."
Dr Lowe said the community will say CEOs need mega salaries.
"As a regular Australian, it disturbs me. Some people who are paid extraordinarily high amounts of money and working Australians have relatively low wages and getting small wage increases, I think it's an issue for the society," he said.
In prepared remarks Governor Lowe flagged a potential further rate cut from its historic low of one per cent.
"At our board meeting next week, we will again take stock of the evidence. It is nevertheless likely that an extended period of low interest rates will be required in Australia to make progress in reducing unemployment and achieving more assured progress towards the inflation target," he said.
Phillip Lowe grew up Cootamundra and Wagga Wagga.
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