Dr Lowe's term is up in October, and it is understood he would like a second seven year term. This is looking less and less likely even before the government's review report on the RBA is due by March 31.

So, given he looks more and more to be a "lame duck" governor whose tenure can be counted in months, Dr Lowe should ask himself whether he may be doing more harm than good by staying on.

Despite his spirited defence on Wednesday of the RBA's decision to lift interest rates on nine successive occasions, from the record low 0.1 per cent, to 3.35 per cent, the community has lost confidence in the central bank.

With hundreds of thousands of households poised to fall over the interest rate cliff, and many more already in severe financial difficulty, that is just not tenable. The loss of trust has occurred because he repeatedly assured the public in 2021 the RBA would not lift its record low official rate of 0.1 per cent until sometime in 2024.

During his Senate appearance Dr Lowe defended a decision to speak to bankers at a Barrenjoey lunch rather than address the National Press Club saying he had received advice he was communicating "too much". It is the quality of his communication, not the quantity, that has been lacking.

Former Reserve Bank governor Bernie Fraser, who has defended Dr Lowe in the past, said on Wednesday the "substantial trust and credibility" the RBA had built up with the Australian public had been damaged by Dr Lowe's low interest rates prediction.

The RBA's credibility is unlikely to improve while Dr Lowe is at the helm and making headlines for all the wrong reasons. He has become an unfortunate distraction.

If he were to just to say he wouldn't be seeking reappointment, the government would be free to launch the search for a qualified successor to preside over the program of reforms expected to be detailed in the RBA review.

After a disastrous two years the RBA is in urgent need of an overhaul and reset. Dr Lowe is part of the problem, not the solution.

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