House Economics Committee to hear from Reserve Bank of Australia after the first monetary policy decision of 2025

THE House of Representatives Standing Committee on Economics will hold its first biannual public hearing of 2025 with the Governor of the Reserve Bank of Australia (RBA), Michele Bullock, and other senior RBA officials on Friday, February 21.

This will be the RBA’s first parliamentary appearance following its much-anticipated February 18 monetary policy decision.

Committee Chair Daniel Mulino MP said the RBA’s Tuesday cash rate call would be closely followed, with many Australian mortgage holders eager for relief.

"We know many Australians with mortgages have been making sacrifices, holding on and hoping for interest rates to ease," Dr Mulino said.

"Whether or not the RBA cuts the cash rate target next Tuesday, the latest inflation data is extremely encouraging. It suggests the end of the road is in sight, and that efforts by both the RBA and the Government to tame inflation without massive job losses are getting the job done."

The latest monthly data shows that the RBA’s preferred measure of underlying or core inflation – annual trimmed mean inflation – dropped to 2.7 percent in December 2024, down from 3.2 percent in November.

Dr Mulino noted that this is the first time trimmed mean inflation has fallen within the RBA’s target band since December 2021.

"The monthly data can be volatile," Dr Mulino said, "but this is still a major milestone – and the quarterly data also shows a sustained downward trend."

He noted that quarterly trimmed mean inflation was at 4 percent in the June 2024 quarter, then dropped to 3.6 percent in the September quarter and 3.2 percent in the December quarter.

Dr Mulino also noted that inflation had been brought down from its December 2022 peak of more than 8 percent (in headline terms) while keeping the unemployment rate "in the very low fours – a historic achievement".

Dr Mulino said the committee looked forward to discussing the RBA Board’s latest monetary policy decision, and the possible trajectory of monetary policy in 2025 under complex and uncertain global conditions.

Dr Mulino said the committee was also interested in the RBA’s Review of Merchant Card Payment Costs and Surcharging, and its progress implementing the Government’s once-in-a-generation reforms to RBA governance arrangements, including the creation of a dedicated Monetary Policy Board.

Public hearing details

Date: Friday, 21 February 2025
Time: 9.30am – 12.30pm
Location: Committee Room 2R1, Parliament House, Canberra

The hearing will be broadcast live at aph.gov.au/live and www.youtube.com/@AUSParliamentLive.

 

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