The managing director of the Finance Brokers Association of Australia Peter White AM has called the revelation by the big four banks that they will not be passing on the recent interest rate cut unconscionable in the current COVID climate.

Mr White said in his more than 40 years in the industry, he shouldn’t be surprised at the moves by banks to increase their profits but this decision at this time is “beyond belief”.

“Have they learnt nothing from the royal commission?” he asked.

“Homeowners and small business are struggling across Australia, and the banks should not only immediately pass on the full cut for mortgages but also extend these lower interest rates to small business loans.

“This is the opportunity for the banks to build trust and send a message that they can put people above profits. I challenge them to do just that.”

Mr White said consumers should be aware that the big four banks are not the only options. “Other lenders are passing the reduction on, and borrowers should talk to their broker to consider what is best for their situation.”