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Banks must pass on rate cuts: Swan

As the RBA meets today to decide whether interest rates will be reduced, following their decision last month to keep rates steady at 3.25 percent, Treasurer Wayne Swan has urged banks to pass on any cut in official rates today to struggling homeowners.

“We do acknowledge there’s a complex set of factors out there and that funding costs have been bouncing around but we’d certainly like to see any official rate cuts passed on as soon as possible,” Swan said.

Economists were divided yesterday as to whether there would be another rate cut, despite the rapid deterioration of the economy.

In an  effort to help struggling homeowners, Mr Swan was yesterday, continuing to negotiate with smaller banks and credit unions to encourage them to join in the Government’s agreement with the four major banks to give retrenched workers some relief with their mortgage repayments, by freezing them for up to 12 months. (Read the full story here).

The RBA is expected to make its decision this afternoon.

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Jessica Stanic

Jessica Stanic

Jessica has a background in both marketing and journalism and is dedicated to making the website the leading online resource for small to medium businesses with ambitions to grow.

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