After the big four banks refused to pass on the full 25 basis points rate cut on Tuesday, Prime Minister Malcolm Turnbull has demanded that they pass on the full rate cut.
The CBA passed on 13 basis points, Westpac cut 14 basis points for some of its home loan customers, NAB passed on 10 basis points across its mortgage book and ANZ has announced it will cut its standard variable rate by 12 basis points.
However, Mr Turnbull said the cuts were not enough. He warned the banks that they operate with a social licence from the people and that they risk exposing themselves to further calls for a Royal Commission.
“It’s not my job to manage the banks or tell them how to manage different products because they’ve all got different risk profiles and so forth, but it is absolutely clear that they have made a conscious decision not to pass on the full extent of the rate cut, and they should have done that,” said Mr Turnbull.
Labor leader Bill Shorten has indicated his intent to keep the pressure on the Government to hold a Royal Commission into the Financial Services Sector.
What do you think? Should the big banks have passed on the full rate cut? Should a Royal Commission be held into the Financial Services Sector?