Australia’s richest man slams ‘idiotic’ RBA

PHOTO: Harry Triguboff. FILE

Billionaire developer Harry Triguboff has warned the Reserve Bank’s skyrocketing rates hikes could have seriously bad unintended consequences.

Meriton Managing Director Harry Triguboff has slammed the Reserve Bank for interest rate rises, which he labelled “idiotic”.

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In a speech at a luncheon hosted by the Australia-Israeli Chamber of Commerce at Dalton House, Hyde Park in Sydney on Wednesday, the 89-year old billionaire and real estate developer spoke about a broad range of issues impacting the housing market and his experience in building high-rises.

On Tuesday, mortgage holders were stung with the fifth consecutive monthly increase in interest rates to 2.35 per cent – a stark contrast to April’s low 0.1 per cent figure.

Harry Triguboff has. Picture: John Appleyard

When asked whether he was optimistic or pessimistic about the state of the market, given recent interest rate rises to their highest levels since 2015, the highly respected Mr Triguboff said it was a mistake for the Reserve Bank to raise interest rates in the first place.

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“Raising those interest rates is a complete idiotic thing. We are following the Americans, I don’t know how clever they are … What’s happening is there is not enough workers,” Mr Triguboff said.

“As soon as we raise interest rates, they (the workers) shop around and get more money. We have to pay them a higher wage because there’s no one else to do the job.”

Harry Triguboff is worried the economy could grind to a halt.

“If we bring new people like migrants and overseas workers, it’ll be okay. But until then, you can raise interest rates as much as you like – unless you are completely prepared to stop the country, it will not help.”

“At present you cannot build in the state of New South Wales … I promise you. If I can’t, nobody can.”

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Speaking at the residential property lunch in front of 400 people, Mr Triguboff, one of Australia’s richest men, said that the reduction in oil prices, timber prices and iron ore values will help deal with rising inflation.

. When asked where he thought interest rates would end up, Mr Triguboff said he wasn’t sure – he said the move to increase rates in the first place was illogical and should never have gone up.

RBA boss Philip Lowe is in the firing line. Picture: NCA NewsWire / Jeremy Piper

“People who buy Meriton apartments are definitely more nervous now than they were in the past. But we have to understand that the (house) prices have not risen for a few years, the wages have increased.”

“Interest rates had to be dropped because of Covid. That was the cleverest thing we ever did, I was really very worried because 80 per cent of my buyers were from China.”

“Everything has to be done in proportion – if we don’t want to ruin the country, interest rates can’t continue to rise.”