Banks on Friday defended their recent practice of hinting rate hikes in response to the competition watchdog's comments that announcing intentions about interest rate movements could almost be anticompetitive behaviour and the subject of possible action.

The Australian Bankers' Association (ABA) said the call for additional Australian Competition and Consumer Commission (ACCC) powers to curb what it describes as bank 'price signalling' will potentially, if adopted, result in a one-sided public debate on banks' funding costs.

Individual banks and the ABA are constantly facing inquiries from journalists, politicians and bank customers seeking a response to comments, allegations or analysis regarding banks' funding costs and other pricing-related issues.

Many of these inquiries stem from comments or analysis from parties other than the banks themselves, according to the ABA.

Steven Münchenberg, Chief Executive of the ABA, said: "All of these commentators influence the public debate and influence how people assess the issues."

"If new ACCC powers allow everyone to comment, except the banks, then the public debate will be missing the key input, i.e. information from the only sources that have the most up-to-date information."

"Constraining banks and not the other participants in public debate will misinform that debate and will mean that the media and other commentators are unable to present an informed and balanced view."

"Also, importantly bank customers have a right to an explanation regarding what is happening with banks' funding costs and interest rates, and how this might impact on household budgets."