The Prime Minister has again given the green light for banks to pass on only part of the RBA's one per cent interest rate cut to borrowers.
The big four lenders have only cut variable rates by 80 basis points, despite each one boasting massive profits for the last financial year.
Kevin Rudd says banks should only pass on what they can afford.
"Our position has not changed and that is that we believe, given the pressures which borrowers face, there should be absolute maximum pass through to working families and to small businesses."