ANZ rate rise another reason to move your money


Smokescreen of bank funding costs used to justify another hit on consumers

CHOICE says today’s announcement of a 6 basis point interest rate rise from ANZ shows the bank’s continued willingness to take its customers for granted.

The rate rise repeats the dose handed out by ANZ on 10 February1, and comes in the wake of recent RBA data showing that net interest margins are increasing.2

“ANZ have decided to go their own way when it comes to raising rates, and their customers should take that as an invitation to consider going their own way as well,” says Matt Levey, CHOICE head of campaigns.

“Recent data suggests that this increase should not be accepted as a win for depositors at the expense of borrowers. In fact, it’s a win for record bank profits at the expense of everyone else.”

The people’s watchdog says recent comments from the RBA have blown the whistle on the major banks’ excuses for interest rate rises, indicating their recent actions were all about “maintaining profitability.”3

“Australians are starting to see through the excuses from the big four banks, and just this week we saw figures showing borrowers are heading away from the major banks in the wake of February’s out-of-cycle increases,” Mr Levey says.

“Over 4,400 Australians have already signed CHOICE’s Move Your Money petition, pledging to look for a better deal beyond the big four banks.

“ANZ have just offered another reminder of why consumers should head for the door and send the big banks a message they can’t ignore,” Mr Levey says.

CHOICE is calling on Australians to take the Move Your Money pledge and look for a better deal beyond the big four banks.

Media contact: Matt Levey, CHOICE head of campaigns – 0488 214 066

(1) See http://www.choice.com.au/media-and-news/media-releases/2012-media-releases/anz-show-they-live-in-a-different-world-to-their-customers.aspx

(2) Reserve Bank of Australia, Chart Pack, Banking Indicators, 4 April 2012, Major Banks’ Net Interest Margin, accessed at http://www.rba.gov.au/chart-pack/banking-indicators.html#3

(3) Guy Debelle, RBA Assistant Governor (Financial Markets), 22 March 2012, accessed at  http://www.rba.gov.au/speeches/2012/sp-ag-220312.html

To read more on CHOICE tests, reviews and campaigns, go to choice.com.au

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