Reserve Bank Governor Philip Lowe will be quizzed about what extra supports might be made available to help households and businesses through the coronavirus recession at a parliamentary inquiry on Friday.
The devastating impact of the pandemic was laid bare in the latest jobless figures, which showed the number of people unemployed topped one million for the first time.
The jobless rate ticked up to 7.5 per cent in July, even before the harsh Melbourne lockdowns took effect.
The central bank has predicted the unemployment rate will hit 10 per cent by the end of the year, and still be around seven per cent in two years.
The jobless rate was 5.1 per cent before the virus entered Australia.
The Reserve Bank has kept the cash rate at a record low of 0.25 per cent since March and has been buying bonds to maintain liquidity in the market while keeping a lid on interest rates.
Dr Lowe has recently said the cash rate will not increase until progress has been made towards full employment and inflation has settled down.
He also warned the road to recovery will be “uneven and bumpy” and the virus outbreak in Victoria will have a major effect on the national economy.
Economics committee chair Tim Wilson said Friday’s hearing would scrutinise the central bank’s response to the pandemic.
“We are interested in learning more about the RBA’s plans to support a strong recovery for the Australian economy,” Mr Wilson said.
In other troubling economic data this week, wages growth sunk to its slowest pace on record and consumer and business confidence both plunged.