ACCC keeping close eye on bank cartel

The competition regulator the Australian Competition and Consumer Commission (ACCC) is believed to be keeping a very close watch on Australia’s big banks.

The ACCC was believed to be very concerned that the National Australia Bank announced its interest rate pricing decision to hold rate movements to RBA guidance well before the RBA’s interest rate decision was made public on Tuesday afternoon.

NAB is currently the price leader in the standard variable mortgage market. If one of the other banks had followed NAB’s lead and announced their own pricing decision the ACCC could have responded with a full investigation into price co-ordination. The Trade Practices Act prohibits the telegraphing of pricing intentions between market rivals.

Source: Herald Sun