All not stable as ANZ walks rate 'tightrope'

by Adam Smith12 Mar 2012

In its now-monthly rate announcement on Friday, ANZ chose to leave variable rates on hold but tinkered with fixed rates.

The bank said improved offshore funding costs allowed it to leave its standard variable rate at 7.36%. ANZ Australia CEO Philip Chronican said the bank had taken the view that "stability was important" in its decision to leavee its rate untouched.

"Our monthly pricing decisions remain difficult. We are walking a tightrope between our customers’ interest in keeping rates as low as possible and the commercial reality that while monthly funding costs go up and down, the upward trend is likely to continue as new funding is still coming on at a wider spread to the cash rate than the funding it is replacing," Chronican said.

In making the decision, though, the bank lifted its fixed rates by between 10 and 20bps. RateCity chief executive Damian Smith said the bank's three-year fixed rate, now at 6.34%, remains 17bps below the average.

"Compared to the other major banks, ANZ’s 3-year fixed package home loan rate is in line with Westpac and below Commonwealth Bank (6.33%) and NAB (6.24%)," he said.

Suncorp also made changes to its fixed rates. The bank lifted its two-year rate 16bps to 6.14%.

Related stories:

Westpac's Kelly tips more rate pain ahead

Content to be stable, as RBA hold pleases

No surprises from RBA as rate unchanged


  • by sidbroker 12/03/2012 11:26:07 AM

    Best thing to do to save money ANZ is to slash the pay packets of your over paid execs!!!!