KEY POINTS FROM THE RESERVE BANK'S ECONOMICS COMMITTEE APPEARANCE:
* Company tax cuts
Governor Philip Lowe was repeatedly asked about the merits of the Turnbull government's proposed tax cuts.
He said companies factored in more than just the tax rate when deciding where to invest but parliament needed to decide whether Australia should join the international competition.
"If we don't respond there are at least some firms who will decide to invest their capital elsewhere."
* Infrastructure
With interest rates so low, Dr Lowe believes Australia should build transport infrastructure, describing it as a "first order gain".
"It increases demand, takes the pressure off ultra-low interest rates, increases the productive capacity of the economy because people can move around, it takes the pressure off housing prices."
* Housing
Dr Lowe described housing affordability as a big social issue concerning many parents, insisting many people spend too much of their income on housing.
Fiddling with negative gearing and capital gains tax concessions should reduce investor demand in housing, but could have unknown effects.
"If we were to remove or alter that combination, I find it hard to know what effect it would have on the housing market."
* Immigration
Dr Lowe rejected suggestions slashing immigration would solve the housing affordability problem.
"Our immigration program, I see, as a source of strength - to give that advantage up just so we can take some pressure off housing prices, I find that problematic."
* Penalty rates
The Fair Work Commission decision to cut penalty rates for retail and hospitality workers may reduce consumption for those affected, but could create jobs and boost spending overall, Dr Lowe said.
"If wage restraint leads to more people having jobs, which I think is what's happened in Australia, more people have money in their pocket than would have been the case otherwise.
"So the aggregate level of spending might actually be higher."
* Interest rates
Dr Lowe said further rate cuts could be "dangerous" in the longer term, pushing up debt and putting more upward pressure on housing prices.
"Is it really in the national interest to create a little bit more employment growth in the short-run at the expense of creating vulnerabilities that could be quite dangerous in the long term?"
