National

RBA boss gears up for another round of questioning

By AAP Newswire

Feb 17, 2023

Reserve Bank of Australia Governor Philip Lowe — Reserve Bank boss Philip Lowe will appear before the House of Representatives economics committee. -AAP Image

The head of the Reserve Bank will face his second parliamentary grilling this week after weaker-than-expected jobs data.

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RBA governor Philip Lowe will likely comment on the significance of the official unemployment rate lifting from 3.5 per cent to 3.7 per cent in January - a higher-than-expected reading.

The central bank watches jobs data closely due to the relationship between the tight labour market and higher wages, which can fuel inflation.

The appearance before the House of Representatives economics committee, chaired by Labor MP Daniel Mulino, will be Dr Lowe's second round of questioning from parliamentarians this week.

Dr Lowe fronted a Senate estimates hearing on Wednesday, where he said the cash rate was unlikely at its peak.

This followed another 25 basis point interest rate hike last week that took the official cash rate to 3.35 per cent.

Dr Mulino said the Reserve Bank had hiked interest rates by one per cent since the last hearing in September.

"This sharp increase in rates, unprecedented in recent times, has been creating pressure across households and the economy," he said.

"While the RBA's view is that inflation is likely to have peaked around the end of 2022, there is still considerable uncertainty in the economic outlook with further interest rate increases expected in the months ahead."