RBA boss to bring calm to Canberra

RBA governor Glenn Stevens will bring his soothing advice to Canberra after a volatile week in Australian politics.

Prime ministers may come and go, but like a favourite uncle, Glenn Stevens is seemingly always there to offer his worldly advice.

The Reserve Bank governor returns to Canberra on Friday to face his six-monthly grilling by the House of Representatives economics committee.

Mr Stevens is due to end his term as central bank governor in 2016 after 10 years in the role.

During that time he will have served under five different prime ministers, and four, possibly five, treasurers.

His latest appearance comes at a crucial time for the federal government with Prime Minister Malcolm Turnbull keen to relaunch its economic credentials against a backdrop of high unemployment, sluggish growth, declining confidence and a budget that remains deep in deficit.

While Mr Stevens goes out of his way to avoid commentary on political matters, he's likely to be quizzed about Mr Turnbull's assertion the Abbott government was not capable of providing the right economic leadership.

The governor will feel more comfortable discussing other matters, such as the performance of the Australian dollar and whether it has depreciated to a level more in line with the state of the economy.

Other issues likely to be canvassed include the labour market, with a jobless rate remaining close to a 13-year high, worries over whether the housing market has been soothed by the actions of financial regulators, and the impact of lower commodity prices from a slowing China.

The hearing will come just after hours after the conclusion of a two-day meeting of the US Federal Reserve.

By that time it may have raised the Fed funds rate for the first time in six years or at least given a strong hint when it might happen.

Australia's equivalent cash rate has been at a record low of two per cent since May.

Committee chair, Liberal MP John Alexander said he will be questioning the governor about the likely impact of current interest rate policy and whether this will "adequately foster sustainable growth and inflation consistent with the target for coming years".


Share

2 min read

Published

Updated

Source: AAP


Share this with family and friends


Get SBS News daily and direct to your Inbox

Sign up now for the latest news from Australia and around the world direct to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Download our apps
SBS News
SBS Audio
SBS On Demand

Listen to our podcasts
An overview of the day's top stories from SBS News
Interviews and feature reports from SBS News
Your daily ten minute finance and business news wrap with SBS Finance Editor Ricardo Gonçalves.
A daily five minute news wrap for English learners and people with disability
Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS
SBS World News

SBS World News

Take a global view with Australia's most comprehensive world news service
Watch the latest news videos from Australia and across the world