Reserve Bank of Australia officials, potentially including the central bank's deputy governor Philip Lowe, will front a special public hearing of the Senate economics committee to explain recent intimations it may begin working with the Australian Prudential Regulation Authority to deliver tougher lending rules, according to media reports.
The ABC reports Labor Senator Sam Dastyari -- who is also the chairman of the committee -- has serious concerns over the central bank's recent statements.
"The danger is unintended consequences whereby you kill off the only people that are investing in new housing stock," he said, according to the ABC.
"We have to be very, very careful, the RBA has not yet made the case and that's why we're hauling them before a senate inquiry this week and demanding some answers."
The AFR reports Mr Lowe has been invited to appear before the committee.
Last week in the RBA's bi-annual Financial Stability Review, the central bank said it had launched talks with the Australian Prudential Regulation Authority about how to reinforce sound lending practices for property purchases.
It said risks to financial institutions would increase if high rates of lending growth persisted or increased.