House Economics Committee to hear from Reserve Bank of Australia next week

THE House of Representatives Standing Committee on Economics will hold its second biannual public hearing with the Governor of the Reserve Bank of Australia (RBA), Michele Bullock, on Friday, August 16. Additional RBA representatives will also appear.

Committee Chair Daniel Mulino MP said the RBA’s decision this week to leave interest rates unchanged was “welcome news to those who feared a rate rise, but no doubt very frustrating to the many praying for rate relief”.

Consumer price data for the June quarter showed a slight easing in the RBA’s preferred inflation measure to 3.9 percent, forestalling the risk of another rate rise for now. However, the RBA says inflation is still too high and has fallen very little over the past year. The RBA has foreshadowed that it will take inflation longer than previously predicted to return to target, and that restrictive monetary policy will continue.

Dr Mulino said the committee would continue its scrutiny of the RBA’s work as the bank strives to return Australia to its target inflation band of 2–3 percent, in an environment of growing global volatility and domestic cost of living pressures.

Dr Mulino said, “The RBA says it believes Australia is still on the ‘narrow path’ to a soft landing, but we also know that both inflation and mortgage stress are causing real pain for our households and businesses. The country relies on sound decision-making by the RBA and the committee looks forward to questioning Governor Bullock and her colleagues about their recent decisions and the path forward.”

Dr Mulino said the committee was also interested in the RBA’s evolving regulatory remit for payment systems, including Buy Now Pay Later services and credit card payments.

Public hearing details 

Date: Friday, 16 August 2024
Time: 9.30am – 12.30pm
Location: Committee Room 2R1, Parliament House, Canberra

The hearing will be broadcast live at aph.gov.au/live.

 

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