The head of the Reserve Bank will front a parliamentary committee following the ninth interest rate hike to counter inflation.
Philip Lowe will be questioned by the economics legislation committee on Wednesday.
Last week, the Reserve Bank lifted interest rates to 3.35 per cent, in the latest increase in this policy cycle.
The bank foreshadowed more interest rate rises to rein in inflation, which grew by 7.8 per cent annually in the December quarter.
The interest rate rises have been driving up home loan repayments, with the federal government concerned about the 800,000 mortgage holders on fixed rates yet to feel the full brunt of increasing rates.
The future of the RBA’s leadership has also come under question ahead of the treasurer’s decision on whether to extend his term in the second half of 2023.
Several MPs, including Labor backbenchers, have questioned the future of Dr Lowe based on the RBA’s predictions issued during the pandemic that interest rates would not rise until 2024.
Treasurer Jim Chalmers has refused to comment on Dr Lowe’s future as Reserve Bank governor.
The RBA is also subject to an independent inquiry, with the findings due in March.
© AAP 2023
