(Adds details of inquiry, background)
April 21 (Reuters) - Australia's competition regulator
said on Friday that it would inquire about how banks have
adjusted their interest rates for deposit accounts after a
series of cash rate hikes over the past 12 months.
The Australian Competition and Consumer Commission (ACCC) is
seeking responses from banks, bank customers and other
stakeholders by May 19.
Following an order from the country's Treasurer in February,
the ACCC will investigate competition and consumer issues
affecting retail deposit products - an important source of
income for Australians - including how banks set their interest
rates.
The Reserve Bank of Australia (RBA) has lifted rates by a
total 350 basis points to 3.6% in a year-long hiking cycle that
kicked off in May last year, to counter surging inflation.
While the "big four" banks have generally increased their
variable home loans rates in line with the RBA's cash rate
hikes, increases to the savings interest rates have "often been
smaller or conditional", the competition watchdog said.
The ACCC is also seeking feedback on impediments consumers
face in switching banks to get a better deal, the role of
deposits in their overall funding mix, and how banks and other
financial institutions compete with each other.
(Reporting by Savyata Mishra in Bengaluru; Editing by
Subhranshu Sahu)
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