MICHAEL JANDA: Well ANZ said explicitly at the end of last year that it was moving away from setting its rates in response to the Reserve Bank decisions. It just so happens that their second Friday of the month meeting happened to be the same week as the RBA's meeting this week but it won't always be so.
That's why it decided to independently put up its variable mortgage rates by 0.06 of 1 percentage point to 7.36 per cent. That'll add about $13 a month to a $280,000 mortgage.
ANZ Goes It Alone On Rates, Sparks Govt Outcry
The controversial decision has repercussions for Australian monetary policy, as it will factor into central bank considerations on the scope of any future interest rate moves. Australian Treasurer Wayne Swan was immediately critical, noting that Australia's banks remain "very profitable," and telling ANZ's customers that they had a right to be angry.
"You do have the capacity to walk down the road and get a better deal," Swan told reporters.
Give us a break from the squeeze
The ANZ made it clear it was freeing itself from Reserve Bank interest rate movements when it said it would make its own announcement on the second Friday of each month.
Thousands of jobs have been lost across Victoria and higher interest rates will further depress consumer confidence. The banks should show they understand people's problems and absorb the pain.
Did any of these people raise a complaint while these same banks spent the last four years issuing overvalued mortgages in the middle of a world-wide crisis?