ANZ announces interest rate hike

Company bosses have been urging banks to lower their interest rates in recent weeks, but unfortunately their calls appear to have fallen on deaf ears.

The Reserve Bank of Australia (RBA) has been criticised by trade unions for its failure to enforce rate cuts so far in 2012.

Business owners believe firms are facing a constant battle to remain profitable while the standard cash rate remains at 4.25 per cent.

However, ANZ announced today (April 13th) that it will be hiking the interest rates attached to its business loans by 0.6 per cent from April 20th.

This will add the equivalent of $1.50 per week to repayments of a loan in the region of $130,000, the company confirmed.

The increase is also being applied to home loans and chief executive officer at the bank Philip Chronican said higher lending costs have forced the company to take these measures.

"We accept our response to the new funding environment is difficult for some of our customers – even though deposit customers have benefited from better rates," he remarked.

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