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Steven Cross
ANZ has come under consumer and political criticism for once-again spearheading an out of cycle rate rise.
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While the bank once again blamed funding costs, Federal Treasurer Wayne Swan accused the bank of protecting its profits.
“ANZ's decision to whack its customers at a time when many of them are doing it tough flies in the face of recent Reserve Bank statements saying funding costs for banks have eased,” he said.
Mr Swan also said ANZ customers should be less than impressed with the excuses, after the bank achieved record profits recently.
But opposition finance spokesman Andrew Robb defended the bank claiming they wouldn’t raise rates unless they needed to.
“You know, they're not stupid and I don't think they would willy nilly put up their margin like this if they weren't suffering a problem with their margins,'' Mr Robb said on ABC radio.
Brokers have also shown their support for the major lender, with the bank placing second in The Adviser’s Third Party Bank Ranking – Major Lenders.
ANZ placed second overall in the 2012 broker ranked survey with a satisfaction rating of 60.01 – slightly behind first place Homeside, which received a broker satisfaction rating of 62.67.
ANZ chief executive Australia Phil Chronican said while rate hikes are not well received, they are a necessary evil in the current environment.
“Given the volatility we have seen in wholesale funding markets, we wanted to ensure these costs were sustained before we acted to pass them on.
“We also wanted to pace increases in a way that was manageable for our customers and ensure we were competitively positioned.”
ME Bank chief executive Jamie McPhee urged Australia's other lenders to not use ANZ's decision as an open invitation to hike rates.
"Consumers are still feeling the impact of the decision by all the major banks, and even some of the smaller banks, to raise rates," said Mr Phee. "The major banks need to think carefully before hurting customers once again."
"With banking reform now making it easier for Australians to switch banks, we expect ANZ's decision will see dissatisfied customers seek out genuinely fairer banking alternatives.”
