Australia's PM: banks must pass on RBA cuts

Kevin Rudd, Australia's prime minister, has urged the nation's banks to pass on the Reserve Bank of Australia's (RBA) rate cuts to consumers.

Banks around the world are facing higher borrowing costs as a result of the global financial turmoil, but Rudd told 3AW, a radio station, that banks had a responsibility to lower rates if the RBA cut.

At 7.25%, the Reserve Bank's official cash rate is now at a 12-year high. But the institution indicated in the minutes of its most recent rate-setting mee