Reserve Bank of ANZ raises rates

The ANZ has independently raised its rates by 6 basis points (0.06%) “reflecting continued pressures on the cost of deposits and wholesale funding”.

This lifts the banks new standard variable mortgage rate to 7.42% putting them above NAB (at 7.31%) and CBA (7.41%) but still below WBC at 7.46%

This chart accompanies the release (find below), showing the change in cost of funding since the GFC – note how wholesale costs have tapered recently, whilst deposit costs have stabilised, but still high.

120413 ANZ April Rates Review FINAL_zYx

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Comments

  1. Cue Goose and every other nob-jockey in the country to have their usual whinge!

    Who’s to raise next 😀

      • meh. i would rather tax payer assisted bailout than some dodgy ETF. WOW dividends better and more reliable.

        • But this ETF would compete with bank’s at call deposits not shares … The tax payer assisted bailout goes only up to 250K per person.

          Why dodgy ETF? The problem with this ETF is that is very small and very new, but the ETF market has huge potential in Australia IMO.

        • Reading the ETF PDS, it is mentioned that they will keep the cash into “bank deposit accounts at one or more major banks in Australia”… so I wonder how the govt guarantee applies there. The risk seems minimal, if you trust BetaShares, but I would want to see how it grows in the next months and how a cash ETF are regulated. If the ETF can grow to a decent size, they would be able to negotiate quite attractive rates with banks. Something I’ll keep on my radar screen.

  2. Why don’t they spin it as a 6 basis point increase for savers and pensioners? Perhaps accompanied by a chart showing the value of $100K in ANZ term deposits from pre-GFC to now compared to $100K in shares?

  3. I am hearing they sacked a number of their wealth business staff
    That’s no great loss
    Pass on the costs no issue there either

    • yeah, i found that quite funny. one day after ANZ puts out a report saying unemployment has peaked…..they sack a couple of hundred staff.

  4. tsport100MEMBER

    How can they justify this while posting a $1.5 BILLION quarterly profit? If they really feel so much funding pressure, are these profits even real?

  5. This is getting a bit ridiculous. Soon mortgagees will just roll a dice to see what their repayment will be this month.

  6. This will further spook a twitchy market. There is still a strongly held belief in the gov or rba to the rescue for property speculators – ie just a lack of moral hazard. This is undermining that sense of security.

    ANZ is probably doing more than the RBA could to dampen the flames (plus the cynic in me thinks this works a treat in scaring the punters into fixed loans).

    • “the cynic in me thinks this works a treat in scaring the punters into fixed loans”

      like lambs to the slaughter

      • Jumping jack flash

        Indeed!

        I will not be at all surprised if all the big 4 raise just a teensy bit to try and kick some of the mega mortgage mugs over to smaller lenders.

        Watch swanny cheer the indebted on to move. He must know.

  7. Waynes Black Swan

    06 rise leaves them 19 bps to play with next month when the RBA drops 25 bps. If the banks decide to keep 10-12 bps for themselves, add that to the .06 bps and we’re looking good for an all but meaningless rate cut.