ANZ customers “rightly angry” Swan

The Federal government says Australian families, with ANZ home loans, will be “rightly angry” with the bank for raising its interest rates.

The Federal Treasurer, Wayne Swan, who delivered that verdict,  also said what he would do, if he was an ANZ customer.

“…I’d be going down the road and seeing where I could get a better deal,” he said.

As expected, the ANZ today became the first of Australia’s big four banks to increase the rates it charges on most of its home and small business loans.

It increased its variable rates on most of its mortgages and small business loans by 6 basis points, even though the Reserve Bank decided, earlier this week, to keep its marker interest rates on hold.

But Westpac quickly followed suit, with a bigger rise.

Its customers will face a 10 basis point rise.

Builders, too, criticised the ANZ, with the Housing Industry Association describing its decision as “unfathomable.”

“The (ANZ’s) decision to increase rates in the same week as the RBA left official cash rates on hold is an immediate blow to families, small business and the economy,” the HIA’s Managing Director, Shane Goodwin said.,

“And the universal condemnation that the bank can expect is justified,” Mr Goodwin added.

His statement  was issued before Westpac’s announcement.

The Commonwealth and the National Australia Bank are studying the ANZ’s decision very closely.

The ANZ insisted, though, that its rates would remain “competitive.”

It said its 6 basis point rise add  just $6.50 a fortnight to repayments on the average home loan of $280,000.

“For small-to-medium sized business customers, the increase will add $3.00 per fortnight to an average loan of $130,000,” it added.

                                        ” We’re rock solid” Swan

Mr Swan also welcomed a detailed statement on monetary policy, that the Reserve Bank has just made, saying it shows that Australia’s economic fundamentals are “absolutely rock solid.”

“We have contained inflation, we have solid growth, we have low unemployment, “ Mr Swan said.

“And we have a huge pipeline of investment.

So I think the message from the RBA today is a reminder to all of the doomsayers and naysayers that we do have a strong economy.

“ We have low unemployment.

“We have bright economic prospects .

“But we do understand that in this environment, particularly with what’s going on globally there are also pressures in our economy…” Mr Swan said.