Powered by MOMENTUM MEDIA
subscribe to our newsletter

Parliamentary committee to grill RBA governor

Reserve Bank governor Philip Lowe has been called to appear before a parliamentary committee to face questioning over the central bank’s monetary policy response to the COVID-19 crisis.

Governor of the Reserve Bank of Australia (RBA) Philip Lowe will appear today before the House of Representatives standing committee on economics to face questioning over the use of its monetary policy tools in response to the economic fallout from the COVID-19 crisis.

The public hearing, which will be held via teleconference later this morning (14 August), will focus on the central bank’s decision to set a 0.25 per cent target for the cash rate and the yield on three-year government bonds.

Governor Lowe previously stated that the “accommodative approach will be maintained as long as it is required”, stressing that the central bank would “not increase the cash rate target until progress is being made towards full employment and it is confident that inflation will be sustainably within the 2-3 per cent target band”.

The central bank also stated that a move to negative interest rates would be “extraordinarily unlikely”, with governor Lowe unconvinced of its utility.

The parliamentary committee also made note of the central bank’s claim that the down “is not as severe as earlier expected” and that a recovery “is now underway in most of Australia”, which it said would be “uneven and bumpy”, given the COVID outbreak in Victoria.

Advertisement
Advertisement

Following the announcement, Liberal MP and committee chair Tim Wilson, commented: “We are interested in learning more about the RBA’s plans to support a strong recovery for the Australian economy.

“There’s never been a more lively time to discuss monetary policy, with reckless proposals for Modern Monetary Theory floated in the media.

“This hearing will provide a good opportunity for the RBA to outline the shortcomings of such proposals.”

This comes just a week after both the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Committee (ASIC) were scrutinised over their response to the pandemic.

The hearing formed part of the committee’s reviews of the 2019 APRA Annual Report and 2019 ASIC Annual Report.

The regulators were also questioned over the ongoing execution of their primary responsibilities, particularly ASIC’s oversight of the self-managed super fund industry.

PROMOTED CONTENT


[Related: Regulators called to face parliamentary scrutiny]

Parliamentary committee to grill RBA governor
Parliamentary committee to grill RBA governor
mortgagebusiness

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

Charbel Kadib

Charbel Kadib is the news editor on the mortgages titles at Momentum Media.

Before joining the team in 2017, Charbel completed internships with public relations agency Fifty Acres, and the Department of Communications and the Arts.

You can email Charbel on: This email address is being protected from spambots. You need JavaScript enabled to view it.

Latest News

Reverse mortgage lenders have accessed a small fraction of the potential retiree housing market in Australia, according to Deloitte. ...

Pepper Money has priced its second I-Prime deal for the year, upsizing the figure to $850 million. ...

The LMI provider has announced a new CFO following the resignation of its current CFO, effective 24 September. ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.