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CANBERRA - Australian Federal Treasurer Wayne Swan is demanding the ANZ bank explain its "excessive" decision to raise home loan rates.
Mr Swan, who has summonsed officials from the central bank, Treasury and the Australian Prudential Regulation Authority to a meeting in Brisbane today, says the bank owes its customers and the government an explanation.
The ANZ yesterday became the second major bank to lift its variable home loan rate outside a decision by the Reserve Bank.
The 0.2 per cent hike was almost double that announced by the National Australia Bank last week.
"These rate rises are clearly a direct consequence of the United States subprime mortgage crisis," Mr Swan told ABC Radio today.
"... but I also point out that Australian banks are very profitable and I certainly would caution them against additional and excessive pressure on Australian families.
"Customers will want to know why the ANZ's hike was almost twice the NAB's hike last week and that's a very good question."
Mr Swan described the ANZ decision as "excessive".
"Excessive rises won't be viewed favourably by the Australian government or Australian families," he said.
"This rise is twice the rise sought by the NAB and in that context I think they've got an explanation to give to their customers and to the government.
"It is excessive."
Mr Swan said it was important for the government to receive a briefing from key financial and regulatory officials about the likely impact of the US subprime mortgage crisis on Australia's economy at today's meeting.
"I think it was very important to receive an update about what's happening in the US subprime mortgage crisis," he said.
"The impact of that on the Australian economy and also the impact of that on the level of interest rates charged by our banking institutions."
- AAP
