Standing Committee on Economics, Finance and Public
Media release, 31 October 1997
RESERVE BANK GOVERNOR TO FACE PARLIAMENTARY COMMITTEE
Reserve Bank Governor, Ian Macfarlane, will appear before the House
of Representatives Committee on Financial Institutions and Public Administration
next week to report on the conduct of monetary policy.
According to Committee Chairman, Mr David Hawker MP, the Bank's appearance
is timely given the recent turmoil on world financial markets.
"The instability on world financial markets, particularly in Asia, is
causing considerable concern and the Committee will be seeking the Governor's
views on the impact this will have on the Australian economy," said Mr
"The difficulties being experienced in many ASEAN economies is important,
but the potentially more significant impact may come from the flow on
from these economies to Australia's significant Asian trading partners
in Japan, China and South Korea which account for 60% of our exports,"
Mr Hawker added.
"There have been varying reports on the likely impact on economic growth
in Australia, and while it may be premature to make such an assessment
at this time, the Committee will question the Governor on the likely impact
on growth, employment and interest rates."
"This is of vital concern to the community, Australia has taken some
very hard decisions to ensure that solid groundwork has been laid for
improvements in growth and job creation." said Mr Hawker.
"A further matter that I anticipate being canvassed is the impact that
the parlous state of the banking systems in Japan and South Korea may
have on this situation."
"It is interesting to note that it appears that a significant factor
influencing the problems in the banking sectors across Asia relates to
the adequacy of supervision, this is a timely reminder of the importance
of the supervisory role of the Reserve Bank."
In addition to issues related to monetary policy, the Committee will
also canvass a number of matters related to supervision of the financial
system including interest rate margins, management of credit risk, asset
price inflation and the payments system.
Finally the Committee will examine a number of matters related to the
proposed reforms to the financial system arising from the Wallis report.
31 October 1997
Further information: David Hawker MP (Chairman) (02) 6277 4100
Chris Paterson (Secretary, FIPA Committee) 02 6277 4587
Reserve Bank of Australia Public Hearing
Thursday 6 November 1997
10.30am to 2.00pm
NSW State Parliament
Mr I J (Ian) Macfarlane, Governor
Dr S A (Stephen) Grenville, Deputy Governor
Mr G J (Graeme) Thompson, Deputy Governor
Media access to the public hearing room will be available following the
opening of Parliament House at 8.30am.
Media representatives will be required to bring their State Parliamentary
Press Passes and interviews and filming is restricted to the hearing room
ie Rooms 814/815.
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