The boss of the Reserve Bank, who has been on the backfoot defending his board's interest rate decisions, will face a parliamentary hearing later this week.
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RBA governor Philip Lowe will appear in front of the House of Representative's economics committee on Friday.
The chair of the committee, Daniel Mulino, said that with "Australia experiencing its highest inflation in 20 years, household budgets are feeling the pressure".
The RBA, which has raised its key interest rate for a fifth month in a row, has also been under pressure to explain why it signalled that rates were staying at the record low of 0.1 per cent until 2024.
Dr Mulino said the repeated rate rises affected house mortgage holders, families, small businesses and investment.
"In this context, continuing scrutiny of our monetary policy settings remains important, particularly in view of the need to learn from past decisions," he said.
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The inquiry will probe the recent RBA decisions and its approach to returning inflation to the 2-3 per cent range over time, and would complement, not replicate the work of the Independent Review of the Reserve Bank announced by Treasurer Jim Chalmers in July.
That independent review into the central bank will examine if monetary settings are adequate for the future economy and the challenges which face it.
Speaking in Sydney last week, Dr Lowe said sustained levels of higher inflation would have larger consequences for the economy.
"We're acutely aware that higher interest rates affect the community differently," he said.
"We need to get inflation back down and that means higher interest rates. And that means that aggregate demand has to grow a bit more slowly for a while to bring it in line with the capacity of the economy to supply."
Harley Dennett
Former federal politics bureau chief for the Canberra Times, via a career that's taken me from rural Victoria to Washington DC. Telling the stories of my local LGBTI community brought me to political journalism, where I've covered eight budgets, four national elections in two countries, Defence, public service and international governance.
Former federal politics bureau chief for the Canberra Times, via a career that's taken me from rural Victoria to Washington DC. Telling the stories of my local LGBTI community brought me to political journalism, where I've covered eight budgets, four national elections in two countries, Defence, public service and international governance.
