Banks must consider Christmas says PM Gillard

The Australian Bankers' Association said on Monday that the RBA would not necessarily expect banks to follow its rate cut.

However, banks came under familiar pressure from Prime Minister Julia Gillard, who told a media conference earlier in the day that the “banks should certainly pass on in full any interest rate reduction if it is made.”

“It is very close to Christmas and so if an interest rate reduction is made, the banks should take into account that Australian families will be looking to them to pass the interest rate reduction on in full,” she said.

Source: Banking Day