The ANZ bank has promised not to raise interest rates above the Reserve Bank’s official rates, reports the Herald Sun.
In an interview with the newspaper, ANZ chief executive Mike Smith said the move to increase rates beyond the RBA’s expectations would not be justified in the current climate.
“I would be reluctant, frankly, to do anything until we really have to,” Smith said. “I’m concerned we’re in a quite fragile stage of recovery (and) I’m reluctant to move above the Reserve Bank, right now, because I can’t see how it would be in the best economic interests of Australia.”
The ANZ is the first of the big banks to confirm it will not go beyond the official cash rate set down by the RBA until the economic recovery is well underway.