RBA Governor Philip Lowe in the spotlight for new parliament economic committee

Reserve Bank boss Philip Lowe will be the first to face a new parliamentary economics committee as interest rate hikes hit Aussie family budgets hard.

Reserve Bank governor Philip Lowe is set to be in the hot seat this Friday as a new parliamentary committee prepares to grill his consecutive interest rate hikes.

The House of Representatives Standing Committment on Economics will hold a public hearing with Mr Lowe on Friday.

Committee chair and Labor MP Dr Daniel Mulino said “continued scrunity” of the nation’s financial policies was “important” as Australians struggled with rising inflation.

“Australians have also seen interest rates rise for the past five months, which not only affects mortgage holders and families but small businesses and investment, too,” he said.

Governor of the Reserve Bank of Australia, Philip Lowe, will be hauled before a parliamentary inquiry. Picture: NewsWire / Monique Harmer

“In this context, continuing scrutiny of our monetary policy settings remains important, particularly in view of the need to learn from past decisions.

“Accordingly, the committee will probe the recent decisions of the RBA regarding interest rate policy, the challenges of tackling our high inflation, and the RBA’s approach to returning inflation to the 2-3 per cent range over time.”

Dr Mulino said the committee hearing will “complement not replicate” the work of the independent Review of the Reserve Bank which was announced by the Treasurer in July.

“Ensuring the RBA remains fit for purpose in the longer term is critical.”