Labor MPs are splitting with Prime Minister Kevin Rudd over interest rates, taking a harder line on banks and urging them to pass on rate cuts to families.
Treasurer Wayne Swan was criticised by opposition leader Malcolm Turnbull for “running up the white flag” against the banks, after he conceded part of an expected rate cut may not be passed on to the public.
Now other Labor MPs have joined Turnbull, saying banks should pass on any interest rate cuts.
“Bloody hell mate, of course they should. They’re bloody quick to put them up,” WA Senator Glenn Sterle told The Australian.
Mr Sterle’s sentiments were echoed by Queensland Labor MP Craig Thomson.
“I think there’s an expectation that’s what should happen. If interest rates go down, the banks should follow,” Mr Thomson said.
“Wayne is taking a broader role but if you are asking me what people in my electorate think, they want the full value passed on.”
Victorian Labor MP Mike Symon agreed.
“I think they should pass on the full value of any cut,” he said. “They are very profitable institutions and many customers are looking forward to a cut in their interest rate after they lifted rates independently of the RBA.”
The Reserve Bank of Australia board is widely tipped to cut rates when it meets on Tuesday, but the global credit crunch has raised concerns banks may not pass on the cut.
