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ACCC to investigate big four banks

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The big four banks are under the spotlight after the Treasurer asked the competition watchdog to investigate their refusal to pass on the full interest rate cuts.

Since January, the Reserve Bank has reduced the official cash rate three times but the major banks have not passed the cuts on in full.

The Australian Competition and Consumer Commission will look into the pricing of home loans and the obstacles customers face when switching banks.

The entire sector will be examined but the Government has made it clear that the big four banks will be the focus.

ACCC chairman Rod Sims tells Ross Greenwood the government will give them greater tools to conduct the inquiry.

“There’s just no transparency or very little transparency around the market.

“The key to it will be using those information-gathering powers to find out exactly what’s going on and why it’s going on.”

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