The government will look at "all options that may be available" if banks refused to pass on interest rate cuts to home owners, Federal Treasurer Wayne Swan warns.
Mr Swan today said he was delighted the National Australia Bank (NAB) had announced it would pass on a reserve bank rate cut if it happened in September, but warned other banks faced a government backlash if they did not do the same.
"I am going to stand up for families that have had eight rate rises in three years. They're hurting. When rates went up banks put up their rates in a nano-second," Mr Swan told ABC Radio.
"I understand from Treasury there is no excuse for banks not to pass on official rate cuts and if they don't do it then all options are on the table."
However, Mr Swan refused to elaborate on what those options were.
"I'm not going to put all the options on the table," he said.