Force banks to pass on rate cuts: Greens

The Australian Greens want banks to be forced to pass on any official interest rate cuts in full to customers.

Greens senator Sarah Hanson-Young says any cuts in official interest rates should result in rate reductions for bank customers and called on the government to link the two.

"I definitely think we need to be looking at how we can make the banks pass on those interest rates and acknowledge that the Reserve Bank hands down those decisions for a reason," she told reporters in Canberra on Tuesday.

"The banks should take that on board and not pretend and not take advantage that consumers and householders and people paying their mortgages have nowhere else to go."

The Reserve Bank of Australia is due on Tuesday to announce its latest decision on monetary policy.

Financial markets expect it will cut the cash rate by 25 basis points to four per cent.