ANZ says we will raise rates

ANZ chief executive Mike Smith told business leaders yesterday that banks may have to act independently of the Reserve Bank and raise interest rates themselves because improving conditions on markets are pushing up the cost of funds.

“Banks will have to raise rates as the funding costs rise, and that may be out of cycle with RBA rate movements,” he said.

Macquarie Bank interest rate strategists Rory Robertson said any move by banks to raise rates independently of the RBA would be audacious and premature.

Source: Herald Sun