ANZ joins CBA in hiking rates
(11 November 2010 – Australia) Australia and New Zealand Banking Group (ANZ) has become the second major bank to raise rates above the Reserve Bank’s official cash rate.
The bank has announced it will increase its standard variable rate by 39 basis points, 0.14 percent above the official cash rate increase of the Reserve Bank of Australia.
ANZ’s interest increase followed a nine day silence from the remaining big four banks on their rates decisions, after the Commonwealth Bank suffered harsh criticism as a result of its 45 basis point increase.
Following mounting political and public pressure the bank also became the first bank to drop exit fees.
The major banks charge establishment fees of about A$600 on a new mortgage, while exit fees range from A$700 at ANZ and CBA to A$900 at Westpac and NAB.
In a bid to shift the focus from its rates move, ANZ also said it would provide A$1600 worth of discounts and subsidies until the end of the year for new and existing customers who switch or fix mortgage rates.
ANZ's Australian chief executive, Phil Chronican, said the political scrutiny had taken on 'a life of its own'. But he said it was a commercial reality that the bank's funding costs remained high.
ANZ’s interest increase followed a nine day silence from the remaining big four banks on their rates decisions, after the Commonwealth Bank suffered harsh criticism as a result of its 45 basis point increase.
Following mounting political and public pressure the bank also became the first bank to drop exit fees.
The major banks charge establishment fees of about A$600 on a new mortgage, while exit fees range from A$700 at ANZ and CBA to A$900 at Westpac and NAB.
In a bid to shift the focus from its rates move, ANZ also said it would provide A$1600 worth of discounts and subsidies until the end of the year for new and existing customers who switch or fix mortgage rates.
ANZ's Australian chief executive, Phil Chronican, said the political scrutiny had taken on 'a life of its own'. But he said it was a commercial reality that the bank's funding costs remained high.
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