Banks can afford rate cuts says Swan

ANZ will make its rates decision at its monthly mortgage committee meeting on Friday and the other banks are not expected to move before then. NAB promised it would maintain the lowest standard variable rate.

Treasurer Wayne Swan said the rate cut would put extra cash in the pockets of families and small businesses and rejected claims the banks could not afford to pass on the full rate cut.

“The banks are very profitable,” he said. “Their net interest margins are around the levels they were prior to the global financial crisis. I think that their customers will not treat them kindly if they do not pass this on in full. I think their customers will be very angry.”

Source: Herald Sun