Rudd urges banks to pass on rate cuts
April 8, 2009
Prime Minister Kevin Rudd says the banks should pass on yesterday's Reserve Bank rate cut in full.
The central bank cut interest rates by a quarter of a percentage point to a 49-year low of three per cent yesterday afternoon.
But by last night none of the banks had passed on the cut in full, with the Commonwealth Bank being the only one to announce a cut, but even that was limited to ten basis points.
The National Australia Bank says higher funding costs mean it can't afford to pass on any of the cut, while the other banks have been silent.
The prime minister says the banks should reconsider their stance.
Sky News
