Treasurer Wayne Swan is still refusing to put pressure on the banks to pass on the full amount of an interest rate cut if the Reserve Bank lowers rates on Tuesday.
The Opposition is accusing the Rudd Government of siding with the banks, and is calling on Labor to stand up for borrowers.
Mr Swan has told Channel 10, he expects the banks to act responsibly when passing on any future rate cuts.
“If the Reserve Bank were to cut official cash rates then that would be a welcome move.”
“What I would expect from the banks is a maximum possible pass on of that rate cut,” he said.
Deputy Prime Minister Julia Gillard has told Channel Nine the government must act responsibly to ensure Australia has a strong banking sector.
“We’re prepared to take a poll hit to do the right thing.”
“The government believes in dealing with these economic circumstances responsibly and prudently and we believe in telling the Australian people the truth about them,” she said.
“We’re not going to play cheap politics with this.”