Social Services Minister Anne Ruston has been on Radio National this morning where she was asked about the big four banks now all passing on the official rate rise to borrowers.
However, only Westpac says it will also pass on the interest rate hike to certain deposit accounts.
The Liberal Party spokeswoman was asked if such an increase should be passed on to all customers with savings accounts that accrue interest (to help with cost-of-living issues).
Here’s the relevant exchange.
Ruston: We would obviously and always have encouraged our banks to reflect what’s going on in the market.
Karvelas: What does it say about banks that they’re not doing that?
Ruston: Well, obviously the Reserve Bank only brought down a decision in relation to the change in the overnight cash rate yesterday.
Karvelas: I know, but they didn’t [wait to increase mortgage repayments], did they?
Ruston: I know that the treasurer and the finance minister and the prime minister will be certainly encouraging our banks to make sure that all the products they’re offering are truly reflective of the market. And, you know, we are seeing a strengthening of the market and therefore we are seeing interest rate rises. So, of course, to Australians who have got money in the bank in deposits, we would like to see they are the beneficiaries of these increases in interest rates as well.