Banks should be forced to pass on rate cuts

Senator Nick Xenophon says banks should be forced to pass on RBA rate cuts in full or explain why they can’t do so. “In the context of the bank guarantee … there should be some mechanism to force them to pass it on,” said the senator yesterday. Family First senator Steve Fielding said banks see the government as a “soft touch”. Yesterday St George Bank became the fifth major bank to announce it was cutting standard variable home loan rates by less than the Reserve Bank’s 0.75 per cent cut.

Source: Herald Sun