I welcome the Reserve Bank’s decision yesterday to again cut official interest rates.
With Christmas just around the corner, this is great news for local families and small businesses.
There’s no doubt Christmas is an expensive time of the year so this rate cut will provide a bit of very welcome Christmas cheer at a time when family budgets are stretched.
It should mean around an extra $50 a month on a $300,000 mortgage. That’s about a $100 a month when you add in last month’s rate cut.
The Gillard Labor Government has worked hard to make sure the nation’s economic fundamentals are strong with very low debt and 750,000 new jobs in the last four years alone.
Local families and small businesses will be deeply angry with any bank that tries to hold back any of this rate cut.
The banks need to do the right thing and pass on this interest rate cut in full.
Nobody likes a Christmas scrooge and I think many local families will judge harshly the banks which don’t pass on the cut to their customers.
The Federal Labor Government has put in place a range of measures to make it easier for customers to walk down the road and get a better deal if their bank does the wrong thing.
For banks which choose not to pass on the cut in full, I encourage local customers of those banks to visit www.bankingreforms.gov.au to learn more about the Gillard Labor Government’s raft of banking reforms all aimed at empowering the customer.