(7 December 2011 – Australia) Australian Prime Minister Julia Gillard has told the banks the official interest rate cut should be passed on full to their customers.The Reserve Bank of Australia (RBA) released the decision to cut rates by 25 basis points on Tuesday afternoon.
‘Should there be an interest rate cut, then certainly I would want to see that passed on in full by the Australian banks,’ Ms Gillard said in Canberra on Tuesday.
‘There is no reason for it not to be passed on in full.’
A 25 basis point rate cut would reduce repayments on an average A$300,000 mortgage by just under A$50 a month.