ANZ National Bank denies it's being greedy

The union for banking staff has complained ANZ is raising its rates hard on the heels of declaring a massive profit. Photo / Paul Taylor

The ANZ National Bank denies it is being greedy by hiking mortgage interest rates.

The union for banking staff is complaining the bank is raising rates hard on the heels of declaring a massive profit, but chief economist Cameron Bagrie says that is misleading. He says the bottom line is that the cost of cash internationally has risen and that is being passed onto the consumer.

Mr Bagrie believes the economy will go through a period of reasonably soft growth for the next one to two years, but says it is not all doom and disaster.

"New Zealand has still got a very good economic framework that will adjust and a low unemployment rate, so it's not the sort of scenario where you go reaching for the razor blades."

This week, the ANZ National increased its two year fixed rate to 9.7 percent. Its three year fixed rate is now 9.55 percent. The bank has recently posted a three month net profit of $310 million.

- NEWSTALK ZB