House of Representatives Committees

Standing Committee on Economics, Finance and Public Administration

Review of the Reserve Bank of Australia annual report 1997-98

Media release: 10 June 1999

RESERVE BANK GOVERNOR TO FRONT PARLIAMENTARY COMMITTEE NEXT WEEK

The House of Representatives Standing Committee on Economics, Finance and Public Administration will hold a public hearing with the Governor of the Reserve Bank of Australia, Mr Ian Macfarlane, in Melbourne on June 17. At the hearing the Committee will question the Governor about the current economic situation in Australia and the Bank's management of monetary policy.

The hearing will be the fifth since the Government and the Reserve Bank formally agreed in August 1996 that the Bank would, in the interests of greater public accountability and transparency, appear before the Committee twice a year to answer questions about the Bank's conduct of monetary policy.

The Committee's Chairman, Mr David Hawker MP (LP, Wannon, Vic), said that the Bank's most recent annual report and May semi-annual statement on monetary policy would be taken into account.

The Committee will also be following up on some matters raised at previous hearings. 'For example, at our last hearing the Bank agreed to provide information on how bank fees and charges have changed over the past 20 years, and we're keen to see that', Mr Hawker said.

According to Mr Hawker, other issues likely to be canvassed include:

The effect of the bias towards monetary tightening by US authorities on Australian monetary policy settings
The likelihood of any interest rate movements in the medium term
Expectations of continuing high growth
The level of household savings
Trends in unemployment
The impact on prices of tax reform and what this means for the RBA's inflation target
Any effect from the current account deficit
The Bank's work in safeguarding banking system stability from Y2K computer malfunctions.

Mr Hawker explained that the Committee would not be asking any questions about the prudential regulation of banks, as this was now the responsibility of the Australian Prudential Regulation Authority. The Committee will be conducting its first inquiry into the APRA later on this year.

The Committee's report on its inquiry into the Reserve Bank is expected to be tabled in Parliament in August this year.

Ends
8 June 1999
Further information:
David Hawker MP (Chairman) 02 6277 4100
Beverley Forbes (Secretary) 02 6277 4582
Email: EFPA.Reps@aph.gov.au

Details of hearing and Committee membership follow

Public Hearing Program: Reserve Bank of Australia

Date: Thursday 17 June 1999
Time: 10.00am to 1.00pm
Location:
Gardenview/ Parkview Rooms
Dallas Brooks Convention and Function Centre
300 Albert Street, East Melbourne

Witnesses: Reserve Bank of Australia
Mr Ian Macfarlane, Governor
Dr Stephen Grenville, Deputy Governor
Mr Glenn Stevens, Assistant Governor

Note: Media access to the public hearing room will be available from 8.30am.

Committee Membership 39th Parliament

Chairman: Mr David Hawker MP
Deputy Chairman: Mr Gregory Wilton MP
Members:
Mr Anthony Albanese MP
Ms Anna Burke MP
Ms Teresa Gambaro MP
Mrs Kay Hull MP
Mr Mark Latham MP
Mr Christopher Pyne MP
Hon Alex Somlyay MP
Dr Andrew Southcott MP