Australia in strong shape, says PM Kevin Rudd

AUSTRALIA is faring well in the global financial crisis but the bottom line is bad for families, according to Prime Minister Kevin Rudd.

AUSTRALIA is faring well in the global financial crisis but the bottom line is bad for families, according to Prime Minister Kevin Rudd.

Mr Rudd, who gave a press conference today, said the global financial crisis would strike a "really bad" blow to Australians' superannuation savings.

"This is one of the really bad developments and bad impacts of what's happening out of a series of bad news from, bad news announcements from the global economy," he said.

"... Let's be absolutely clear about it. What is happening in the global economy and what people see daily on their television screens and the impact on stockmarkets affects people's superannuation earnings, it really does.

"It hits the bottom line and it's bad, it's really bad. Let's not mince words about it."

Mr Rudd said consumers should have confidence in Australian banks, which had strong balance sheets and were well regulated.

“This country is in strong shape,” he said.

"Australia is in a league different to most other economies in the world.”

Mr Rudd went on to highlight a report on the soundness of Australian banks from the World Economic Forum.

"Australia is ranked fourth out of 134 and to put that into context the UK ranks at number 44, the United States number 40 and Germany at number 39."

Closer to consumers, Mr Rudd called for the banks to pass on Tuesday's 100 basis point cash rate cut to credit card holders.

"There should be maximum pass-through of the interest rate cuts to those holding credit cards," he said.

"If people aren't getting the right deal from their individual bank then they should be voting with their feet."