Australian families should hit back at banks punishing them with interest rate rises, says Federal Treasurer Wayne Swan.
In the wake of today's mortgage rate hike by the country's largest home lender, the Commonwealth Bank - the third unofficial rate rise by a lender in a week - Mr Swan demanded banks justify their need to hurt families.
And he said should borrowers should consider taking their business to a bank that would look after them.
The Commonwealth Bank today announced it was raising its standard variable mortgage rate by 0.14% to 9.58% from Monday.
The move follows similar rate actions by St George last Friday and BankWest mid-week.
Mr Swan said that, as banks make commercial decisions, families should also look for a lender that best served their interests.
"I'd remind (these banks) that hard-pressed families will reward banks that provide relief when it's possible, not just increases,'' he said.
"Now is the time for families to look for a bank that can best shield them from the increased cost of borrowing flowing from the US sub-prime crisis.''
Mr Swan acknowledge the pressures on borrowing costs as a result of the global credit crunch, but said "banks do need to justify their actions to working families''.
"As I have been saying for some time, these unofficial rate rises come at a time when families are already hurting from skyrocketing global oil prices and eight interest rate rises in just over three years,'' he said.
Opposition Leader Brendan Nelson said Prime Minister Kevin Rudd and his government needed to put a "blowtorch'' on the banks to explain their actions.
"We've had two official rates rises from the Reserve Bank of Australia ... but the banks are increasing their interest rates under Mr Rudd but I don't remember them doing that under (former treasurer Peter) Costello,'' Dr Nelson told reporters in Launceston, Tasmania.
"Mr Rudd's got to put the blowtorch on them to do this, explain to Australians why, with such huge profits, are they further increasing interest rates.''
AAP
