Australia's big four banks will face a new inquiry over their failure to pass on official interest rate cuts to customers in full. Treasurer Josh Frydenberg has asked the competition watchdog to examine why mortgage holders are being charged rates well above the record low cash rate.
ACCC Chair Rod Simms says the inquiry will investigate why banks set rates where they do and make them more accountable for those decisions.
It would also try to make it easier for consumers to switch banks to get a better rate.
We really want as much transparency as we can get. It helps the economy work better, it helps consumers make better decisions. So, through this process, I think we'll be able to shed light on why banks make the decisions they make, how they make these decisions. And that will only be a good thing for the economy.