Banks must pass on rates cut: Turnbull (AAP)

The overnight collapse of global sharemarkets has not changed Opposition Leader Malcolm Turnbull's view that Australian retail banks should pass on in full any official interest rate cut. The Australian share market shed nearly three per cent in early trading on Tuesday morning following big drops in the US and Europe, and ahead of a likely half a percentage point cut in the local cash rate later on Tuesday. Mr Turnbull said the global situation was worsening, but he was confident the strength of the local economy would help it handle turbulent times. "We have very rocky days ahead ... but it is not going to be pretty over the near term," Mr Turnbull told Fairfax Radio. "That's why politicians, particularly prime ministers and treasurers, have to show real leadership and speak up for every sector of the community, every part... [read full story]