ANZ poised to announce new interest rate settings

ANZ's radical rate-setting strategy faces its first test tomorrow – almost a month ahead of the next meeting of the RBA.

ANZ will announce its rate pricing for the next month independently of the Reserve bank.

Analysts have suggested ANZ's decision will increase scrutiny on the bank, will undermine the Reserve Bank's power to influence rates in the “real economy” and is likely to lead to higher borrowing costs as banks begin to change rates at will.

ANZ has the smallest lending book among the big four banks at $161 billion.

Source: Herald Sun