Australian central banker in rate cut call amid half-point speculation

Australia's federal treasurer Wayne Swan has urged high street banks in the country to pass on as much as they can of any rate cut that the Reserve Bank of Australia may make next week.

Commenting amid speculation that the bank may cut rates by as much as half a percentage point next week, Mr Swan said: "I would encourage all of our banks to act as responsibly and as competitively as they possibly can," reports ABC News.

Speaking on the AM show, Mr Swan stopped short of demanding a full passing on of any rate cuts to borrowers, acknowledging that the current situation is "complicated", but said he "won't relent" on his calls for them to do as much as they can.

A large cut in interest rates and a consequent passing on of this cut to mortgage products could make it cheaper for people to invest in property in Australia.

Last month the Reserve Bank announced that it was lowering the cash rate from 7.25 per cent to seven per cent.