Banks need to be told to cut rates

Banks need to called in by the prime minister for a fireside chat and told to cut interest rates says the federal opposition. Former treasurer Peter Costello says he often called the big banks in for talks when he was treasurer. The Prime Minister Kevin Rudd said “We want to see a maximum pass-through of any reduction in official interest rates to consumers,” Mr Rudd said. “But we also want to make sure that we maintain the stability of the Australian financial system, consistent with the advice of the regulators.”

Mr Rudd said the Reserve Bank had made it clear global economic turmoil meant banks were having to pay more for money. The opposition leader Malcolm Turnbull said Mr Rudd had become an apologist for the banks, who had recorded improved profits in the latest reporting season.

Source: The Australian