Last month we reported on the ANZ’s decision to break away from the RBA and start setting lending rates independently.
Today ANZ has decided to put interest rates up, raising the standard variable rate from 7.3 to 7.36 percent. While the 6bps move is a drop it the ocean, it could be a sign the ANZ is testing the waters to see what backlash raising rates will bring. Should we be expecting larger moves next month?
And when will the other banks follow suit?
The move follows UBS research released earlier this week suggesting banks could be losing money on new mortgages due to rising funding costs. This “dangerous situation” provides banks little incentive to offer mortgages and could cause them to simply stop lending.
[ Westpac has followed suit, raising its standard variable rate 10bps to 7.36 percent. ]
» First time buyers could be hit by lending drought – Mozo, 7th February 2012.