Australian PM won't pressure banks over interest rate cut
Updated
The Australian prime minister, Kevin Rudd, has indicated he won't pressure banks to fully pass on any home loan interest rate cuts because he's got a responsibility to make sure Australia's financial system is stable.
Since the global financial crisis began, Kevin Rudd has been at pains to point out that Australia's banking system is sound.
Now that the crisis has deepened there is a less confident tone.
Mr Rudd still maintains Australian banks are strong, but it appears he won't be pushing them when it comes to interest rates.
"My responsibility is to ensure the continued stability of the Australian financial system," he said.
The Opposition says banks are profitable enough to pass on future rate cuts in full.
