Bankers considering enquiry attendence

Three political parties -Labour, the Greens and the Progressive Party - are banding together to launch their own inquiry into the relationship between the official cash rate and short term interest rates after Parliament's Finance and Expenditure Select Committee decided against a similar inquiry several weeks ago.

"Kiwis believe they are paying higher interest rates than they should be paying," Labour finance spokesperson David Cunliffe says. "Banks believe interest costs are justified. The facts should be put on the table fairly and openly so that people can see whether they are receiving a fair deal,"

The NZBA has released a statement saying it is yet to receive "full clarity around the nature, scope and merit" of the proposed inquiry.

"Each bank will be making its own decision on the extent, if any, of participation in this review, while the association will canvass members as to what engagement, if any, it has on members' behalf," it says.