National

Frydenberg defends way he met RBA governor

By AAP Newswire

Treasurer Josh Frydenberg has defended organising a much-publicised meeting with Reserve Bank governor Philip Lowe.

Mr Frydenberg invited Dr Lowe to his Melbourne office on Thursday, with the pair smiling for cameras while lauding Australia's economic outlook.

Despite the media event the treasurer says the pair had a private two-hour meeting with senior government officials.

"The economy is facing challenges and it's important that we continue to swap notes and that we work together in understanding the developments that we're seeing across the economy," Mr Frydenberg told ABC's Insiders program on Sunday.

"It's important that we continue to talk."

Mr Frydenberg says Dr Lowe was "absolutely" fine with cameras being present after the meeting, stressing the RBA's independence from government.

"The fact that we sat down for over two hours, exchanged notes on the economy and went through in detail the infrastructure pipeline, is a positive development, not to be looked at in any other way."

But former Labor treasurer Wayne Swan, who held the position for six years, says he doesn't remember seeing a similar press event between a treasurer and RBA governor.

"Clearly the treasurer put him (Dr Lowe) in a difficult position," the former MP tweeted.

Labor frontbencher Linda Burney is giving Mr Frydenberg the benefit of the doubt, saying it's perfectly legitimate for him to have met Dr Lowe.

"Whether it was a media opportunity or not, I'll leave for others to decide," she told reporters in Sydney.