ANZ hikes rates independently of the RBA

Source: Sydney Morning Herald

ANZ Bank has lifted its mortgage rate independently of the Reserve Bank today, raising its standard variable rate by 6 basis points. The rate will increase from 7.3 per cent to 7.36 per cent, effective from next Friday.

“This month we faced a serious dilemma in our review, balancing the rising cost of bank funding including deposit customers’ interests in receiving highly competitive rates, and the expectation of borrowers that we keep lending rates as low as possible,” ANZ chief executive officer Australia Philip Chronican said.

“In December and January we absorbed the additional funding costs in the hope that funding pressures would ease and that no change in lending rates would be necessary. However, margins in retail and business banking have now been squeezed for a number of months and we’ve taken the difficult decision to pass on part of the higher costs to customers while we also get on with taking action to reshape the bank for tougher times.”

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