Reserve Bank boss Philip Lowe will face a second round of intense questioning from politicians on Friday.
Mr Lowe will front a house standing committee on economics where he will be grilled about rising interest rates, unemployment and inflation.
He is set to face three hours of questioning after nation’s official unemployment rate jumped unexpectedly to 3.7 per cent in January, according to data released on Thursday by the Australian Bureau of Statistics.
This week at Wednesday’s senate estimates hearing, Dr Lowe hinted more interest rate rises are on the horizon despite struggling Australians personally sending him “disturbing letters” about their hardships.
his first public appearance since the bank hiked rates for the ninth consecutive month.
Since May, RBA board has increased the cash rate nine consecutive times, aggressively hiking it from 0.1 per cent to 3.35 per cent.
Financial markets now expect the cash rate to hit 4.1 per cent by August.
Dr Lowe said then he had an “open mind” to further rate rises but didn’t know just how far the bank would go.
“It will depend upon inflation data, resilience, spending, and what’s happening with wages. I don’t think we’re at the peak yet but how far they need to go, we’re still unsure,” the governor said.
Asked if he deserved to hold onto his job, Dr Lowe said he intended to serve out his seven year term which is due to end in September.
He did not indicate if he would be seeking a three-year extension to his term.
The federal government last year ordered a review of the RBA, due mid-year. It’s expected that review will help form Treasurer Jim Chalmers decision on whether to reappoint him.
Dr Lowe apologised in November for his comments.
Last week, the RBA indicated there are more hikes to come, as it uses interest rates as its main weapon in its battle to lower inflation which is sitting at a 32-year high of 7.8 per cent.
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