SYDNEY: Australia and New Zealand Banking Group, the country's fourth-largest bank, said on Friday it planned to raise its standard variable mortgage rate by 6 basis points, even though the central bank kept rates on hold earlier this week.
ANZ said intense pressure on its retail and business margins had led to the increase. ANZ's variable interest rate is now set at 7.36 percent, on par with Westpac's variable rate.
"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 said in a statement.
ANZ's decision to raise rates may see Australia's other big banks following suit and hiking rates independently of the central bank.
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