<< Return to the House News home

Next Reserve Bank hearing on 8 September

The House Economic Committee tabled its report on the Review of the Reserve Bank of Australia Annual Report 2007 (First Report) on 2 June. This report provides a summary of key issues raised at the public hearing with the Reserve Bank in Sydney on 4 April 2008.

The Committee Chair Craig Thomson said “the current upward trend in inflation has prompted the Reserve Bank of Australia (RBA) to increase the official cash rate to 7.25 up 75 basis points since the former committee met with the Bank in August 2007. The RBA has now increased the cash rate 12 times since 2001; with a total of a 100 basis point increase from 8 August 2007.”

“On top of these official rate rises, commercial banks have been raising rates independently of the Reserve Bank of Australia. This has placed a heavy load on people struggling with their mortgages who, at the same time, are facing increasing pressures to pay their bills,” Mr Thomson said.

The committee, taking these issues into account, will continue to scrutinise the RBA over its conduct of monetary policy and seek the most up to date forecasts for inflation, growth and rates.

The Reserve Bank’s forecasts for inflation indicate that underlying inflation should start moderating from June 2009 and reach about 2.75 percent by December 2010. The public hearing scheduled for 8 September 2008 will be an opportunity for the Reserve Bank of Australia to report on the most recent economic data available.

The next public hearing with the Reserve Bank of Australia is on 8 September 2008 starting at 9.00am and finishing at about 12 Noon at the Promenade Room, Dallas Brook Centre, 300 Albert Street, East Melbourne.

The full report may be found at: http://www.aph.gov.au/house/committee/economics/rba2007/index.htm

Comments to: liaison.reps@aph.gov.au
Last reviewed 3 June, 2008 by the House Liaison and Projects Office
© Commonwealth of Australia
Parliament of Australia Web Site Privacy Statement
Images courtesy of AUSPIC