Standing Committee on Economics, Finance and Public
Administration
Media release, 1 May 1998
RESERVE BANK GOVERNOR TO FACE PARLIAMENTARY COMMITTEE AGAIN
Reserve Bank Governor, Ian Macfarlane, will appear again before the
House of Representatives Committee on Financial Institutions and Public
Administration on Thursday 7 May in Melbourne to report on the conduct
of monetary policy.
Committee Chairman, Mr David Hawker MP, said 'the Bank's appearance
is timely allowing the Committee to again canvas the Bank's views on the
Asian currency crisis and the impact of that crisis on the Australian
economy. It is also time to address a number of current bank supervisory
matters with the new financial sector reform legislation now progressing
through the Parliament. As well, the Committee will follow-up a number
of matters raised in its March Interim Report on the RBA.'
'At the Committee's November hearing the RBA adopted a reasonably optimistic
stance on the Asian crisis in the longer term and the prospects for Australia
in the light of that situation. The RBA's more recent projections have
become a little less favourable but it is still expecting Australia to
be among the better performers in the OECD area. The Committee will be
looking for the RBA's current projections and the evidence to support
those views' said Mr Hawker.
Mr Hawker noted that 'In recent speeches the RBA has been tactfully
critical of the IMF's handling of the Asian financial crisis and has outlined
misgivings with the IMF program in Indonesia. The RBA will be expected
to elaborate on its concerns.'
'More recently the level of Australia's current account deficit and
the levels of foreign debt have blown out. The RBA's views and suggested
policy responses will be sought.'
Mr Hawker said 'Some of the other matters that the Committee would address
at the hearing include:
- claims that the RBA holds interest rates at high levels too long;
- recent developments regarding interest rates in the US;
- how far the RBA has progressed with assessing how significant a component
executive salaries is of average weekly ordinary time earnings;
- Japan's role in the Asia currency crisis;
- implications for the RBA of the establishment of the APRA;
- banks' progress in dealing with the "Year 2000 problem";
- continuing problems with declining bank lending standards; and
- evidence for the RBA's optimism that there are improved lending rates
for small businesses.'
Mr Hawker reiterated that 'the hearing provides the Parliament, financial
sector and the community with valuable insights into the way in which
the RBA conducts its activities and monetary policy and the basis for
its decisions.' He said that 'the Committee expects to table its final
report on this inquiry before the end of the current parliamentary session.'
Ends
1 May 1998
Further information:
David Hawker, MP (Chairman) (03) 5572 1100 (Electorate)
Bev Forbes (Inquiry Secretary) (02) 6277 4587
Program - Reserve Bank of Australia Public Hearing
Date: Thursday 7 May 1998
Time: 10.30am to 2.00pm
Location:
Meeting Rooms 4 and 5
6th Floor
Customs House
414 La Trobe Street
MELBOURNE VIC 3000
Witnesses:
Mr I J (Ian) Macfarlane, Governor
Dr S A (Stephen) Grenville, Deputy Governor
Mr G J (Graeme) Thompson, Deputy Governor
Note: Media access to the public hearing room will be available from
8.30am.Members of the media are required to check-in with the Security
desk on the ground floor of Customs House to obtain a day pass to facilitate
access to the building.
Committee Membership 38th Parliament
Chairman:Mr David Hawker MP
Deputy Chairman:Mr Gregory Wilton MP
Members:
Mr Anthony Albanese MP
Mr Larry Anthony MP
Hon Ian Causley MP
Mrs Christine Gallus MP
Mr Joe Hockey MP
Mr Mark Latham MP
Hon Stephen Martin MP
Mr Stephen Mutch MP
Dr Brendan Nelson MP
Mr Christopher Pyne MP
Dr Andrew Southcott MP
Hon Ralph Willis MP
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