Key takeaways:

• CBA, CSL, and Fortescue Metals Group are the main names on the earnings calendar this week

• RBA Governor Philip Lowe will face a grilling from parliament on the RBA communications and outlook for monetary policy

Investors will be looking for further clues from the RBA this week when its monetary policy outlook is scrutinised by parliament, at the same time US inflation data is assessed.

Economic Calendar and News

A week after the nation central bank hiked interest rates for the ninth time in nine months, RBA Governor Philip Lowe will face a tough examination in the week ahead. He will front two parliamentary committees over the coming days, with concerns about the pressure on households around the country, the risk of a recession, and terminal interest rate expectations among the key questions. 

The RBA may point to the very real risk of a wage-price spiral, with the bank already outlining it expects higher wages growth this year, something the government has sought to downplay as a threat to inflation.

As the key figurehead behind the bank rate hike campaign, not only will the bank pivot to a more hawkish tone draw scrutiny - including what is likely to be several more rate hikes over the coming months - but the bank communications are also expected to be questioned. 

That follows news the RBA held a private briefing with institutional traders following last week Board meeting, but made no such public appearance to discuss monetary policy in an open setting, as is standard practice in the US.

Later in the week, observers will be treated to an update on the state of the local jobs market. Economists forecasts suggest as many as 20,000 jobs may have been added to the Australian economy in January. If that transpires, the unemployment rate is likely to remain at 3.5%.In the US, key inflation data in the week ahead will provide insights on what the Federal Reserve may be inclined to do in shaping interest rates. 

Forecasts suggest a further improvement in terms of both core inflation and headline inflation, with annual readings expected to come in at 5.5% and 6.2% respectively, compared with 5.7% and 6.5% in the month prior.

Other US data on the economic calendar includes retail sales, industrial and manufacturing production, building permits, and the producer price index.

Stocks on watch

With the first batch of earnings flowing through last week, investors will now turn their attention to a host of heavyweight names that will deliver updates.

Monday sees companies such as Insurance Australia Group (ASX: IAG), JB Hi-Fi (ASX: JBH), Endeavour Group (ASX: EDV), Beach Energy (ASX: BPT), Aurizon (ASX: AZJ), Carsales (ASX: CAR), and LendLease (ASX: LLC) headline proceedings.A day later, biotech giant CSL (ASX: CSL) is the major talking point, while Ansell (ASX: ANN), Computershare (ASX: CPU), Seven West Media (ASX: SWM), and James Hardie (ASX: JHX) are among those that will be vying for attention.The week most interesting results will be saved for Wednesday, with the nation largest bank, Commonwealth Bank (ASX: CBA), the key talking point, but other giants like Fortescue Metals Group (ASX: FMG), Cochlear (ASX: COH), and Wesfarmers (ASX: WES) all set to hand down earnings. They will be joined by Corporate Travel Management (ASX: CTD), Treasury Wines (ASX: TWE), and Vicinity Centres (ASX: VCX), to name a few.By Thursday, there will also be updates from the likes of Telstra (ASX: TLS), Origin Energy (ASX: ORG), National Australia Bank (ASX: NAB), Bapcor (ASX: BAP), Domain (ASX: DHG), Evolution Mining (ASX: EVN), Newcrest Mining (ASX: NCM), Whitehaven Coal (ASX: WHC), South32 (ASX: S32), Sonic Healthcare (ASX: SHL), and Goodman Group (ASX: GMG).The week ends with a quarterly update from Westpac (ASX: WBC), as well as interim results from QBE (ASX: QBE), Inghams (ASX: ING), and Latitude (ASX: LFS).

In terms of the major banks, CBA half-year results will be watched particularly closely. The view on the street is that the bank cash profits may have increased by as much as 11%, with net interest margins one of the key drivers as the Reserve Bank of Australia hiked interest rates every month throughout the period.

Those rate hikes were passed on to borrowers in full, with savers seeing a more modest appreciation in deposit rates. Nonetheless, mortgage loan growth and signs of bad debts will be a focal point, with the bank effectively a barometer for the strength of the Australian household. If rates have delivered a bumper increase in profits as expected, CBA dividend could be in line for a double-digit boost. 

However, with further rate hikes all but laid out by the RBA in the wake of last week Board meeting, results from CBA, as well as first-quarter updates from NAB and Westpac, will shine light on whether the economic outlook and credit quality could become issues down the track as rate hikes come home to bite. 

On this front, an expected increase in margins could be offset by increasing bad debts. Furthermore, with the RBA and Treasurer Jim Chalmers drawing attention to interest rates being offered to savers, banks may be facing an outlook where they are pressured into passing on more of their margins.

Consumer retail is the other major theme this week as investors assess where Australian consumers are spending their money in the midst of a multi-decade high inflationary environment. Sales growth from the second half of last year is expected to remain resilient for companies like JB Hi-Fi, Super Retail Group, Bapcor, Wesfarmers, and Corporate Travel Management, among others, however, it is guidance outlooks that will be under the microscope. 

With many analysts expecting an economic slowdown across Australia this year, and borrowers facing ever-increasing home loan repayments, discretionary spending is widely tipped to fall. This may prompt an increase in the number of companies that are reluctant to offer guidance to the market, so early trade data since the start of the year could provide a gauge.

Among healthcare stocks like Ansell and Sonic Healthcare, investors will likely be focusing on the post-COVID drop-off in terms of activity. Healthcare stocks were a major beneficiary during the midst of the pandemic, with a surge in demand for personal protection equipment and testing underpinning significant growth. Since then, demand has normalised', and supply chain constraints have also weighed on margins, ensuring these issues become a point to watch over the coming days.

And lastly, with resource players like Fortescue Metals, Whitehaven Coal, South32, Beach Energy, Newcrest Mining, and Evolution Mining all on the reporting card, shareholders will get a clear view on what booming commodity prices mean for earnings and dividends. However, rising costs have been a pressing theme across mining stocks, and investors will need to digest whether these headwinds are alleviating, or getting worse, at a time when prices for the likes of coal, oil, and gas have come off the boil, but gold, iron ore, and copper have found support.