In another development which has come as a sign of how the Government is rapidly losing all its patience with the country's major banks, Australia's Prime Minister Kevin Rudd attacked one of the nation's leading banks, the Westpac Banking Group, on Wednesday as it tried to justify the hike in its mortgage rates "by comparing its business to selling banana smoothies".

The country's third-largest lender was slammed by the PM over an email that it had sent to its customers regarding the rise in rates.

Last week, the bank had lifted its mortgage rate by a whopping 45 basis points, after the RBA raised rates by 25 basis points. The lender's move in particular managed to infuriate the Government and customers who were planning on purchasing their own homes with the economy steadily improving.

"I think Westpac should have a long hard look at itself. (They are) talking about people's most basic things in life, a mortgage, an affordable mortgage, to underpin things as basic as a home. Customers out there should be looking at where else they can do their banking", said Mr. Rudd.

The email that Westpac had sent to its customers contained a video, which compared the bank to business selling banana smoothies on the street, after "storms had decimated plantations and forced retail banana prices to rise".