SYDNEY Feb 10 (Reuters) – Australia and New Zealand
Banking Group, the country’s fourth-largest bank, said
on Friday it planned to raise its standard variable mortgage
rate by 6 basis points, even though the central bank kept rates
on hold earlier this week.

ANZ said intense pressure on its retail and business margins
had led to the increase. ANZ’s variable interest rate is now set
at 7.36 percent, on par with Westpac’s variable rate.

“Margins in retail and business banking have now been
squeezed for a number of months and we’ve taken the difficult
decision to pass on part of the higher costs to customers while
we also get on with taking action to reshape the bank for
tougher times,” ANZ said in a statement.

ANZ’s decision to raise rates may see Australia’s other big
banks following suit and hiking rates independently of the
central bank.

(Reporting by Amy Pyett; Editing by Muralikumar Anantharaman)