ANZ: Interest rate for credit cards to increase

The interest rate on ANZ credit cards has now gone up.

ANZ's plans to up the interest rate on its credit cards are now effective.

The bank – which offers the ANZ Balance Credit Card among others – announced it would increase the rate by up to 0.25 per cent pa, as well as on its business lending.

Some deposit products have also increased by the same amount, which includes the ANZ Online Saver and ANZ Progress Saver.

Phil Chronican, ANZ chief executive of Australia, said the changes are down to the pressure on wholesale debt, as well as the intense competition for deposits.

This comes after the Reserve Bank of Australia raised the cash rate by 0.25 per cent to 4.25 per cent earlier this week and the bank thought it wise to pass on the increase so it didn't "place customers under additional stress".

The Blackdown Sun's Phillip O'Neill recently remarked that many Sydney residents were wondering why the RBA had increased the rate once again.

By Kate Guthrie