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Wayne Swan stops short of demanding banks pass on full rate cut
http://www.news.com.au/heraldsun/story/0,21985,25001214-661,00.html
UPDATE 9.55am: TREASURER Wayne Swan has stopped short of demanding banks immediately pass on today's interest rate cut in full.
The Reserve Bank is tipped to reduce its official cash rate by at least one percentage point to 3.25 per cent, the lowest rate in 45 years.
Mr Swan was cautious when asked whether the banks should pass on the cut in full, saying these were difficult economic times.
"We certainly think that the banks ought to be passing on the full rate cut as soon as possible,'' he told reporters.
"But what we also have to bear in mind is that we live in a very difficult international environment and funding costs move around.''
Mr Swan said he would like the banks to pass on any cut in "a timely way''.
The most important thing for Australia was to have both fiscal and monetary policy working together to strengthen growth and support jobs in the face of a global recession, he said.
Details of the Government's latest response to the flagging economy and the global financial meltdown will be unveiled at 12.30pm today.
It was imperative Australia responded with a fresh stimulus package, Mr Swan said.
"There is no doubt that in the past couple of months a dramatic collapse in global demand, caused by the global recession, has had a dramatic impact on economies right around the world,'' he told reporters. |
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