The Government's economic management has meant consumers get to enjoy interest rate cuts much quicker than under Labor, the Minister for Financial Services & Regulation, Joe Hockey, said today.
Following today's 0.5 per cent cut in official interest rates, 12 Australian home lenders will pass the cut on to mortgage borrowers, the longest taking just nine days.
This compares with the system inherited from Labor where home owners had to wait 51 days, on average, to get the benefit of falling interest rates.
Under Labor it took banks 35 days to pass through interest rate cuts to small business. Today, under the Coalition it has taken just seven days.
'"Under Labor, you had to wait. The Coalition's economic management has meant that consumers get to enjoy rate cuts much quicker," the Minister said.
"This is a stark difference between a Government committed to reform, a Government that is committed to good policy and a policy-lazy Labor Party.
"I congratulate the banks for moving so quickly - particularly Westpac and National Australia Bank - and encourage all banks to pass on the rate cut across the board in small business lending, home loans, and credit cards."
Average time taken between cash rate change and change in other rates
|
Easings 1996-97 |
Easings 2001* |
|
|
Housing indicator rate |
51 |
4 |
|
Large business indicator rate |
21 |
7 |
|
Small business indicator rate |
35 |
7 |
Source: Reserve Bank of Australia Bulletin, August 1997 * Actual day figures from National Australia Bank and Westpac media releases