ANZ chief plays down RBA's role in setting interest rates
Article by Mozo
Many Aussies were outraged when the country's major banks hiked the interest rates on their home loan packages after the Reserve Bank of Australia (RBA) opted not to lower the national cash rate in February.
The RBA has since resisted the urge to make readjustments in both March and April, although two consecutive monthly reductions were made towards the end of 2011.
Plenty of customers felt their lender was undermining the authority of the RBA by putting their rates up, but leaders at ANZ have insisted that the central bank's rate setting powers are a "myth".
Speaking to the Australian Associated Press, ANZ's head of Australian operations Phil Chronican said that the link between the RBA's rates and those offered by banks corroded during the economic recession.
He said that in the past some banks used the RBA as a scapegoat for the high rates of interest being attached to mortgage products, because this was "convenient at time".
Have a question about interest rates? Ask the money gurus at Mozo Answers.