The Finance Brokers Association of Australia (FBAA) calls on the major banks to pass on any future cuts in official interest rates to help struggling borrowers.
FBAA President, Peter White, said the banks owe it to Australian households to pass on, across the board, any cuts to official rates in relation to mortgages and personal finance products such as credit cards.
“The market has factored in consecutive rate cuts in September and October and should this play out, the banks need to act quickly to pass on any relief to borrowers.
“When official rates increase the banks move with incredible agility to factor in the adjustments. On behalf of struggling households across Australia, the FBAA calls on the banks to act with the same sense of urgency in reflecting any rate cuts by the Reserve Bank. The passing on of any official interest rate adjustments needs to work both ways.
“The banks have experienced a degree of relief from illiquid credit markets with the cost of funds easing and there looks to be further good news on the way in the form of likely cuts by the RBA.
“In an ideal world the banks would believe they have a social obligation to choose the welfare of struggling households over their own bottom-line, but we’ll have to wait and see if this is in fact the case,” Mr White said.