Swan disappointed CBA trimmed rate cut

Federal Treasurer Wayne Swan says he is disappointed the Commonwealth Bank of
Australia (CBA) has failed to pass on to customers the full interest rate cut.
The Reserve Bank of Australia (RBA) cut its key interest rate by a larger than
expected three-quarters of a percentage point to 5.25 per cent following Tuesday's
monthly board meeting.
The CBA was the first major bank to cut its variable home loan interest rates
following the RBA announcement, lowering rates by 58 basis points.
"I'm disappointed to see that the Comm Bank could only come through with 58 basis
points out of the 75," Mr Swan told Macquarie Radio.
"I'd certainly like to see the rest of that passed through as quickly as possible.
"I do recognise that there is volatility out there in international markets, but I'd
like to see this passed through in full, and if it is not passed through in full
now, very soon."
Mr Swan earlier said the Australian economy was being "significantly buffeted" by
dramatically changing international events.
"What it now shows is that Reserve Bank and the government are working in tandem,
working in tandem to strengthen our economy in the face of the global financial
crisis," Mr Swan told reporters in Canberra.
Last month the government announced a $10.4 billion economic stimulus package to
support the economy, which included one-off payments to pensioners and low-income
families.
"We are not immune from what is happening internationally ... what is happening
internationally has changed dramatically in recent times," Mr Swan said.
"We do have some underlying strengths but we are being buffeted significantly by
these changed circumstances and it was recognised today by the Reserve Bank's
decision."
He expects the economy to continue to show positive growth.
The government's updated economic growth forecasts will be released this month in
the Mid-Year Economic and Fiscal Outlook.
Banks have no excuse not to pass on the full benefit of Tuesday's 0.75 percentage
point interest rate cut, federal Opposition Leader Malcolm Turnbull says.
Buoyed by the government's deposit guarantee scheme, and still showing healthy
profits, the banks were well-placed to pass on the rate cut, Mr Turnbull said.
"We expect the banks to pass that rate cut on to their customers in full, they have
the capacity to do so and they ought to do so," Mr Turnbull said.
"The banks have been receiving a lot of support through guarantees from the
government, they are strong and profitable, and the benefit of these rate cuts and
the stimulatory effect that these rate cuts are designed to have cannot be enjoyed
by consumers, by homebuyers, by businesses large and small, unless they are passed
on."