Australia’s four big banks would need to take a long hard look at themselves if they fail to pass on any interest rate cuts to the mortgage belt, Prime Minister Kevin Rudd says.

“If you are going to produce profit lines like we saw registered yesterday by the Commonwealth Bank, and then to say in the same breath that if official rates come down we are not going to pass on that cut to those who are making mortgage repayments - I think banks suffer collective damage to their reputations,” Mr Rudd said in Adelaide today.

“From my point of view, it is something the four commercial banks need to have a long hard look at themselves and how the Australian public look at them.”

Mr Rudd said a full range of account switching devices would be available to bank customers from November.

“So that customers will then be able to vote with their feet.”

AAP