Fed:Banks' rate stance "serious issue" for economy:Swan

AAP General News (Australia)
08-18-2008
Fed:Banks' rate stance "serious issue" for economy:Swan

Federal Treasurer WAYNE SWAN says the retail banks will be putting the economy at risk
.. if they don't match any interest rate cut by the Reserve Bank.

The RBA will release minutes from its August 5 board meeting tomorrow .. after clearly
indicating it intends to cut its key cash rate because of a rapid slowdown in economic
growth.

But the retail banks are refusing to guarantee they'll be able to follow suit .. drawing
a series of threats and warnings from the government.

Mr SWAN has told Fairfax Radio there's absolutely no excuse for banks not to pass on
an official rate cut from the Reserve Bank in full.

AAP RTV cb/sw/ibw

KEYWORD: ECONOMY (CANBERRA)

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