ANZ increases interest rate on deposit products

ANZ has upped its interest rates on a range of products following the official cash rate increase by the Reserve Bank of Australia this week.

ANZ is set to up the interest rate on a range of its deposit and lending products by 0.25 per cent per annum on May 7th.

The bank – which offers the ANZ balance credit card – made the move after the Reserve Bank of Australia's recent official cash rate rise from 4.25 per cent to 4.5 per cent.

ANZ chief executive for Australia Phil Chronican said it was in the interests of the economy, as well as its customers, that it continues to take in high funding costs.

He added: "We will carry on doing all we can to keep consumer and small business lending rates as low as possible."

The rates on its credit cards and business lending will also increase by the same figure.

The organisation recently announced an underlying profit for the half year, which ended on March 31st, of $2.3 billion, up 23 per cent of the previous half.

By Emma North