Banking & Saving - ANZ, NAB and Westpac rates under review

Westpac Banking Corp. - the second largest home loan lender in Australia, Australian New Zealand (ANZ) and National Australia Banking Group (NAB) have all said their interest rates are constantly under review

ANZ said although its rates were always under review it had no plans to change them at present.

Jane Counsel, a spokeswoman for Westpac said: “We never forecast future interest rate rises or decreases. Interest rates are something that are constantly under review and we take a number of factors into consideration, one of them being the cost of funds”

One bank that has announced it will be increasing rates is Commonwealth Bank of Australia, who will be raising its home and business loans by 0.1 percentage points in order to offset higher funding expenses. Prime Minister Kevin Rudd and politician Wayne Swan have condemned the move, branding it as “selfish”.

From June 15th, the rate on its standard variable rate loans will increase from 6.64% to 5.76%.

Mr Swan said the decision has raised concerns that other banks will follow suit, as well as causing a step back in the economic recovery process.

“The decision by the Commonwealth Bank gets in the way of interest rates relief measures to stimulate our economy and to support jobs. I think Australians rightly will be furious with the Commonwealth Bank for hindering the efforts of the commonwealth government, the Reserve Bank and the community to support our economy during the global recession.”

Kevin Rudd shared the same views and said that Australians have the right to be furious.

“I believe Australians have every right to be furious with today's decision by the Commonwealth Bank to increase its home loan rate, hindering the efforts of the government, the Reserve Bank and the business community to stimulate the economy during this global recession. We are all in this together - businesses, workers, government and the Reserve Bank - and today's decision by the Commonwealth Bank runs counter to this nationwide effort.,” he said.

According to the Australian Prudential Regulation Authority, Westpac covers 26% of the home loan market behind CBA.

Written by Sam Gooch