Fed: MPs to grill RBA over interest rates

AAP General News (Australia)
08-18-2006
Fed: MPs to grill RBA over interest rates

MPs will get a chance to grill Reserve Bank Governor IAN MACFARLANE today .. and the
main issue on their minds is certain to be interest rates.

Since Mr MACFARLANE last fronted the House of Representatives Economics Committee ..

the bank has lifted interest rates twice.

They now sit at six per cent .. among the highest in the developed world.

And .. in its latest statement on monetary policy .. the bank warns that underlying
inflation will remain around the three per cent level for up to two years.

Chairman BRUCE BAIRD says this month's interest rate rise will be of particular interest
.. in view of recent record oil prices .. and their impact on the economy.



Mr MACFARLANE retires next month and will be replaced by his deputy .. GLENN STEVENS.

AAP RTV so/wz/psm/

KEYWORD: RBA (CANBERRA)

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