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Next Reserve Bank hearing in Melbourne.



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j) AIIBTRALIA F HOUSE OF REPRESENTATIVES STANDING COMMITTEE ON ECONOMICS

Chair: Mr Craig Thomson, MP

Reserve Bank of Australia Report Tabled

Next Reserve Bank hearing in Melbourne

9.00am, Monday, 8 September 2008

The House Economics 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 of Australia 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 Hall, 300 Albert Street, East Melbourne.

Any media or financial wire services requiring direct telecommunications links with the public hearing at the venue will need to make their own arrangements with the Dallas Brook Hall. The committee does not cover the costs for these services.

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

To arrange media comment: Please contact the committee chairman, Mr Craig Thomson on (02) 6277 4460 or 0419 498 691 (mobile). For further information: Please contact the committee secretariat on (02) 6277 4564, email eft. a.reps@aph. oov.au or visit online from the committee's website http://www.aph.gov ,au/house/committee/efpa/index.htm

Telephone: 02 6277 4587 PARLIAMENT HOUSE

Facsimile: 02 6277 4774 CANBERRA ACT 2600

E-mail: EFPA.Reps@aph.gov.au Website: www.aph.gov.au/economics