Eyes on banks as rate cut predicted
Posted
The RBA will hold its board meeting in Sydney today. (ABC News: Michael Janda, file photo)
Federal politicians will be keenly watching banks to see how much of today's predicted rate cut they pass on to customers.
Treasurer Wayne Swan is not pressuring the banks to respond to an official cut in full because of their soaring borrowing costs amid the global financial crisis.
But the Opposition argues all of the cut should be passed on to borrowers.
Shadow treasurer Julie Bishop says the best way to keep the banking sector strong is to make sure businesses are strong.
"...so that people keep their jobs and continue to pay their loans and meet their financial obligations to the banks," she said.
"So while it's important to keep our banks strong, people's jobs must also be secure and that is why the benefit of any interest rate cut should be passed on in full to the broader economy."
