Australia's big banks should pass on rate cut: treasurer
06 Feb, 201212:38:01
CANBERRA, Feb 6 (Asia Pulse) - Australia's big banks are hugely profitable and their customers would be very angry if they failed to pass on an interest rate cut in full, Treasurer Wayne Swan says.
In a pre-emptive strike ahead of the Reserve Bank of Australia decision on Tuesday on whether to make a third successive cut to the official cash rate, Mr Swan warned banks it was now easier than ever for dissatisfied customers to take their business elsewhere.
He said the banks were saying they should have a right to maintain huge profitability forever, irrespective of market conditions.
The official cash rate now stands at 4.25 per cent, with market analysts almost universally tipping a 25 basis point cut to four per cent on Tuesday.