Treasurer Josh Frydenberg has today asked Australia’s competition watchdog to conduct an inquiry into the banking sector’s refusal to pass on recent interest rate cuts in full to its customers.
The Deloitte Choice in Banking Report has revealed 2.8 million customers switched to new financial providers for their home loans, credit cards and transaction accounts in the last year.
Falling interest rates have got Australians scared and bizarrely it’s borrowers who are the most spooked, according to the most recent Westpac consumer sentiment survey.
Since beginning the year with record-low expectations, Aussie home sellers are now the most optimistic they’ve been for at least three years, according to survey results.
Australia’s big four banks have now all announced cuts to their interest rates, following the RBA’s decision to drop the cash rate to a historic low of 0.75%.