We all know that Reserve Bank of Australia (RBA) decided to leave the cash rate on at 4.25%. But among the big four banks, National Australian Bank (NAB) has the lowest standard variable rate at 7.22%. Westpac currently offers 7.36% and Commonwealth is 7.31%. Among these Big Four Banks, only ANZ raised its variable interest rates for retail and loans by 7.36%.
According to ANZ Australia Chief Executive Phillip Chronican, “The decision to lift rates was made because of intense pressure on retail and business banking margins.” The rate rise will add $6.50 per fortnight to the average home loan of $280,000. Because of the rate rise, 85% of ANZ customers are already ahead on their repayments and they will not need to pay more.