ANZ raises rates by 0.06%
(13 February 2012 – Australia) At its monthly rate meeting on Friday, ANZ Banking Group raised its variable interest rates for retail mortgages and small business loans by 0.06 percent.
The move took standard variable interest rates on home loans to 7.36 percent from 7.30 percent.
Fixed lending rates were cut – three year fixed rate home loans will fall by 0.15 percent to 5.99 percent.
ANZ Australia chief executive Philip Chronican said the decision to lift rates was made because of intense pressure on retail and business banking margins.
'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,' he said in a statement.
'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.'
ANZ no longer announces interest rate movements in lock-step with the RBA.
The move was designed to change the public's perception that ANZ's loan rates, and cost of funds, were tied to the RBA's cash rate.
Fixed lending rates were cut – three year fixed rate home loans will fall by 0.15 percent to 5.99 percent.
ANZ Australia chief executive Philip Chronican said the decision to lift rates was made because of intense pressure on retail and business banking margins.
'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,' he said in a statement.
'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.'
ANZ no longer announces interest rate movements in lock-step with the RBA.
The move was designed to change the public's perception that ANZ's loan rates, and cost of funds, were tied to the RBA's cash rate.
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