Australia's ANZ raises interest rates on investor home loans

SYDNEY: Australia and New Zealand Banking Group (ANZ) is raising interest rates on loans for homes bought for investment purposes just days after tough new capital rules were unveiled, in a move that other lenders are likely to mirror.

The Australian Prudential Regulatory Authority (APRA) announced on Monday that banks should have cash reserves equal to 25% of mortgage books by July 2016, up from 16% now.