PM warns banks on rate rises

The prime minister has warned the big banks that there is no good reason for them to raise interest rates by more than the Reserve Bank’s rate rises. The RBA is expected to raise official interest rates by 0.25 per cent for the fourth time in recent months today.

Markets have priced in a 71 per cent chance of a rate rise today. Markets expect official interest rates to be almost one full percentage point higher in 12 months. Mr Rudd said commercial banks had a responsibility to customers. "Let's face facts, any increase in interest rates has an effect and hurts working families, that's the truth of it," Mr Rudd told the Nine Network.

Source: Sydney Morning Herald