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Tuesday, 02 December 2008

Banks warned to follow suit if Reserve Bank cuts rates

8/08/2008 11:43:00 AM.  | John Barrington
Banks reluctant to lower interest rates recommended by the Reserve Bank, will face renewed pressure from the Federal Government today.

An inquiry hearing into competition in the banking and non-banking sectors is underway in Melbourne this morning, with Bankwest and the ANZ first to face the committee.

The hearing comes just days after the Reserve Bank left interest rates on hold for the fifth month in a row, signaling a rate cut was on the way.

But, with no commitment from any bank to lower rates at this stage, Labor MP and Committee Member David Bradbury says the inquiry is taking action on behalf of struggling home-owners.

“I want to ensure that we’re able to receive some commitments from the banks that they will be able to pass on the full value of any rate cuts to their customers.”

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