Australian government prepared for voter backlash
Updated
The Australian Government says it is prepared to weather a voter backlash for not demanding the banks to pass on any interest rate cut in full.
The Treasurer Wayne Swan says it's the 'right thing' to not pressure the banks to pass on any interest rate cut in full.
He argues borrowing costs are through the roof and he wants Australia's banking system to remain strong to withstand the global financial crisis.
The Deputy Prime Minister Julia Gillard concedes the government's softened stance may prove unpopular but says the government is prepared to take a poll hit to do the right thing.
The former Treasurer, Peter Costello, says the banks can afford to pass onto consumers the full cut as they are highly profitable and well capitalised.
The Reserve Bank is widely tipped to cut rates on Tuesday.
