ANZ attributed higher wholesale interest rates to its decision to increase standard variable home loan rates yesterday.
Effective Wednesday 9 January, the interest rate on the bank’s standard variable rate home loan will increase by 0.20 per cent to 8.77 per cent for both new and existing customers.
“Since July last year, the wholesale interest rates that Australian banks pay when they borrow short-term funds to lend to customers have been up to 0.60 per cent higher than normal,” ANZ Group managing director personal Brian Hartzer said.
“More recently, the cost of wholesale short-term funds has been around 0.30 per cent higher.”
“These higher costs have been sustained into 2008 and given this we have had to pass some of the higher costs on to home loan customers.”
Hartzer expressed hope that global market conditions will ease in the medium term, stating that ANZ is committed to passing on reductions in wholesale interest rates to customers when such an easing in costs occurs.