Banks slammed for failing to pass on full interest rate cut


The Government has lashed out at major banks for failing to pass on all of this week’s interest rate cut. It believes consumers need the full savings to stimulate the economy.

Lucy McCrossan reports.

TRANSCRIPT

Once again homeowners aren’t getting the full rate cut.

Now the Treasurer is urging them to be upset, complain and get in touch with their banks about it.

Josh Frydenberg, Australian Treasurer: “We are not about to legislate it but the RBA has made clear and we have made clear the cost of lending has come down and they should pass it on to consumers.”

Only two of the big four big banks have so passed on anything at all.

The Commonwealth cut principal and interest loans by zero point one three.

NAB went down by point one five.

The opposition says the Commonwealth has to do more than just rely on the Reserve Bank to help to stimulate spending.

Anthony Albanese, Opposition Leader: “What does it take to shake this government out of complacency, when it comes to the need to manage the national economy.”

While interest rates are officially at the lowest level ever, observers believe they may have to go even lower.

Lucy McCrossan, QUT News.