Reserve Bank Governor to appear before House Economics Committee in Canberra

THE House of Representatives Standing Committee on Economics will hold a public hearing with the Governor of the Reserve Bank of Australia (RBA), Dr Philip Lowe, in Canberra from 9.30am to 12:30pm on Friday, 17 August 2018.

Since the previous hearing with the RBA in February 2018, monetary policy has remained accommodative with a cash rate of 1.50 percent, following the RBA’s recent decision to leave interest rates unchanged.

Commenting on the decision to keep rates on hold, the RBA Governor said low interest rates are "continuing to support the Australian economy’ and that ‘further progress in reducing unemployment and having inflation return to target is expected, although this progress is likely to be gradual".

The Governor expects growth in the Australian economy to average just above 3 percent in 2018 and 2019, which should further reduce spare capacity in labour markets.

In its August Statement on Monetary Policy, the RBA noted softer than expected inflationary pressures in the Australian economy in the near term, and said it did not expect underlying inflation to reach the middle of its 2-3 percent target band until the end of its forecast period in 2020.

The Chair of the House Economics Committee, Sarah Henderson, said, "The committee will examine these issues in more detail and will ask the RBA if it remains confident that current monetary policy settings will encourage growth and inflation consistent with the target for coming years."

Public hearing details: 9.30am to 12.30pm, Friday, 17 August 2018, Main Committee Room, Parliament House, Canberra

The hearing will be webcast at www.aph.gov.au/live