ANZ Bank has lifted their mortgage rate independently of the Reserve Bank today, raising its standard variable rate by 6 basis points.

The rate will increase from 7.3 per cent to 7.36 per cent, effective from February 17.

“This month we faced a serious dilemma in our review, balancing the rising cost of bank funding including deposit customers’ interests in receiving highly competitive rates, and the expectation of borrowers that we keep lendingrates as low as possible,” said ANZ CEO Australia Philip Chronican.

“In December and January we absorbed the additional funding costs in the hope that funding pressures would ease and that no change in lending rates would be necessary.”

“However, 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.”

czappone@fairfax.com .au